Cramer: LULU's Perfect Storm of Boo-Boos

 | Mar 30, 2017 | 3:00 PM EDT
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What if there was just a coalescence of mistakes in executing e-commerce and fashion all at once at Lululemon (LULU) ?

I am curious to see what you think later tonight when I interview CEO Laurent Potdevin, because this is actually a rare miss, an erratic eight weeks in time that have taken 20% out of this stock's market cap.

The long knives are out here because LULU has become one of the most copied brands out there and in order to stay fresh it has to stay at the cutting edge.

The issue for me has been that LULU seemed to be able to transcend both fashion and apparel by surfing the wave of health and wellness.

It was loved for that until 24 hours ago. Now it is being treated as if it is like Hain (HAIN) , another health and wellness play that's been sidetracked.

Of course, Hain's got accounting issues.

LULU has execution issues.

After speaking to the CEO -- and I want you to watch Mad Money tonight so you can judge -- I feel that his confidence has to be based on something, or why bother? I also know that he's not sidestepping the mistakes, he's owning them.

But in the end, we know we can't pay a big premium again for a business that can so dramatically flop on just the "look" and the desire to be ahead of a pack of jackal imitators.

That doesn't mean, however, that it should trade at a big discount to the S&P either, which is what would happen if it were whacked again tomorrow, which I actually expect to happen given how institutions are fleeing so fast and there aren't enough buyers down here.

Watch the interview. You may feel some remorse after tomorrow's trading if you still want to sell.

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