+ Watch LULU
on My Watchlist
The Company is a designer and retailer of technical athletic apparel in North America.
Technical's are very positive right now. I think it will continue to grow and the stock will outperform the SP500
Inventory build of 55%! Ouch
LULU's stock has been beaten up over the last few years due to operational concerns and possible mismanagement of the company. Despite the decline, I feel recent changes at the company will improve operations going forward. This is a very strong brand that makes products that can bring a large premium. Also, LULU's products are a favorite among millennials which will lead to growth in the coming years. This brand also has room to grow. I view this company as being in a similar position to UA from '07-'08. While it is unlikely the company will experience the same success as UA, I think it is well positioned to outperform the market.
double bottom yesterday and today, higher lows and higher highs on 5 min chart. Looking good for bounce to start next week.
They are overreaching as they try to expand their consumer base and the same fickle consumer that put them where they are will find a new trend.
reported a good quarter today, stock being hit -- down almost 11% as I type -- presumably due to a margin hit that is short term in nature and elevated inventory levels related in part to the west coast port delay earlier this year. there was product they didn't receive until late in Q2. however, they remain on track with plans to normalize inventory levels that they announced in Q1, and they are seeing growth across their business and strong returns in all their new stores across Asia. Suffice to say, I think the market action is a classic Mr. Market over reaction to items of a short term nature. we'll see. Outperform.
LULU rides ups and downs like a roller coaster. However I see more and more Lululemon clothes and management seems to be getting better and are willing to make changes to move the brand forward. I think that once they stabalize I would look for a takeover from UA, NKE, or maybe even a Reebok.
I own a 60-75-90 call butterfly. Betting on a turn around and re-exceleration of growth.
Ukrainian castle jokes on the side, I hope Putin stays out of this equity as a primary holding. He does own a potato wagon, so sales of this equity could rise at anytime. PRLB not actually...
if you don't know how well lululemon fits, you don't know.
lululemon is a specialty retailer that designs and sells technical athletic apparel under its lululemon athletica (adult) and ivivva athletica (kids) brand names. The company operates an e-commerce business and also sells 17% of its goods Direct to Consumer, and the remainder through wholesale outlets and showrooms. The company has 254 corporate-owned stores: 54 in Canada, 171 in the U.S. and 29 in Australia and New Zealand.This is another restructuring story in the consumer space that I think is set up well for 2015. The company has experienced a turbulent two-year period that included the departure of its founder and CEO, product malfunctions and recalls and supply-chain problems. These events led to a falloff in sales and a confused consumer - just at the time when the competitive environment has heated up from the likes of Nike, Under Armor and the Gap (with its Athleta brand). The company now has new management in place, a new private equity investor stake and has fixed many of its previous supply-chain issues.I'd say my interest in the company initially peaked back in August when private equity group Advent International took an $845 million stake in the company for an 8% premium -- at the time this was $42. This was significant not only because the founder reduced his stake to just 13% from 28% but also beacuse it got Advent involved in the company again. If you remember, Advent was the one who owned a 38% in the company when LULU went public in 2007 --- Advent then sold a 12% interest at the IPO and then closed out its entire stake in 2009 for a handsome profit. So now that Advent is back again, I think this is a pretty strong endorsement that LULU's issues are fixable and that its long-term growth story remains intact. Along with mgmt's $450 milion buyback program, I think this low $40s is likely a floor on the shares. Besides this restructuring and PE interest, I think the reason that I'm more convinced about LULU now is that traffic finally rose to the mid-single digits after several quarters of decline. I realize that the avg basket is still short in every category but a lot of it is due to the fact that the company didn't have enough seasonal products - the new mgmt team is working on changing the core assortment more frequently.
I asked my 12 yr old daughter what is popular in clothes right now. Lululemon is one of her favorites!
If you don't know you better ask
About $1,800 per sq. ft. That's way, way above average. And they've got plenty of room to grow.
Lots of room to go back up
This stock has gone down a lot, but fundamentals have been strong enough to support my Outperform call
With the internal bickering mostly out of the way, it's time to get back to selling yoga pants. I think LULU is going to sell a lot of yoga pants
I think that at today's prices, investors who buy the stock are getting a top growing brand with a still big addressable market (international opportunity is still untapped) at a good price. Although the company may still face some problems because of the product-quality issues, I think Lululemon will learn a lot from its mistakes and will come ahead as a better company, and if it retains its status as a lifestyle brand, which I think it does (Lululemon ranks fourth in sales per square foot of space among brick and mortar retailers), once it does, it has what it takes to continue growing and protecting its margins for many years, resulting in an excellent formula to outperform the S&P 500.
Overpriced products - It's hard to deny how comfortable yoga pants are, but I doubt people will keep paying $98 for one pair. I think that soon Gap or Uniqlo will come up with products with the same quality but much lower price points.
I think this is a great brand that has come under some extraordinary pressure over the last 12 months. Between product recalls and turnover in management and the Board, LULU has gotten beaten down in the market. I think this is a resilient brand with loyal and passionate customers and LULU will find it's way back to strong growth. More and more people adopting a healthy lifestyle won't hurt either.
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