CNBC’s Jim Cramer said Lululemon remains too risky to buy despite falling more than 80% from its December 2023 record high and more than 50% this year. Shares recently dropped below $100 for the first time in more than eight years after a disappointing quarter, when comparable sales fell 9% and mainland China sales declined 2% against expectations for 14.5% growth. Lululemon also forecast third-quarter revenue falling 10% to 11% year over year and earnings of 93 cents to 98 cents per share, versus Wall Street’s $2.40 expectation, while cutting its full-year sales and earnings outlook. Cramer cited pressure from Alo Yoga and Vuori, changing fashion trends and the athleisure category’s crowded competitive landscape. He said new CEO Heidi O’Neill, who took over Tuesday, could become a catalyst after the company operated under interim co-CEOs following Calvin McDonald’s departure at the end of January. Cramer said the weak outlook could be a “kitchen sink quarter” that resets expectations, but he wants evidence of improving sales, overseas momentum and competitive positioning before recommending the stock.