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Lululemon Stock Bulls May Be Completely Blindsided In A Few Short Hours

Lululemon's (LULU) red-hot stock may soon cool off as some black clouds are approaching on the horizon.

Shares of the yoga apparel maker have surged about 18% since the company's first quarter earnings release in early June, and are now up a jaw-dropping 54% year to date. Wall Street is genuinely in agreement that Lululemon benefited during the second quarter from the strong athletic apparel cycle that is also lifting rivals such as Under Armour (UA) and Nike (NKE) . "We forecast second quarter same-store sales growth of 7%, slightly above the high end of the company's mid-single digit percentage growth guidance based on positive store checks throughout the quarter," wrote Wedbush analyst Morry Brown ahead of the results. Brown's read on Lululemon's quarter was echoed elsewhere.

"Compelling product and improved execution should [have] fueled a healthy second quarter performance," D.A. Davidson's Andrew Burns said. Wall Street also seems to agree that Lululemon's stock run could come to an end shortly, for several reasons.

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Lululemon investors may be at risk from difficult sales comparisons later this year, new tank tops that will lack significant innovation, and the stock's already nosebleed valuation, said Canaccord Genuity analyst Camilo Lyon. "We see the risk relative to reward ratio tilting downward," he said.

Meanwhile, analyst Brown said "flawless...