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NASDAQ:LULU
This summary was created by AI, based on 20 opinions in the last 12 months.
LuLulemon Athletica is currently facing significant challenges, showing a steep decline in stock value over the past year. Experts express mixed feelings about its future, with some viewing the recent management changes as hopeful yet uncertain. The brand seems to be struggling to differentiate itself in a competitive market filled with cheaper alternatives, especially with its mainstay leisurewear category underperforming. Financial guidance appears bleak, with the company reducing revenue expectations and a notable drop in same-store sales in North America. Despite its iconic status, the consensus seems to note that LULU's appeal may be waning, leaving investors cautious. The need for a successful product refresh and a sustainable turnaround plan is emphasized by multiple analysts, making a wait-and-see approach seem prudent.
Looking at the chart, a deep value play. A brand-new addition for her, just picking it up this week. Over the years, she's traded it multiple times and made money. Retail sector has been one of the primary pain points in the last few months, and she sees opportunity. No dividend.
With this one, you have to consider the bigger picture: quality, customer loyalty. 80% of revenue in 2023 from USA, 10% from China, rest globally. Oversold, recession fears have moved to the back burner. Trading at 40% discount to 10-year average. Her price target is $400, a 37% return on a trade from here. High-quality business, challenging macro, story's far from over.
They report next week. They have huge brand awareness, but to be honest this is a tax-loss sale after they report. However, he won't do that yet because they trade at 30x historically and now at 21x. He bought at 27x. He got ahead of this, but won't sell it yet. No doubt there's more competition in this space.
He's definitely looking at it, exciting at these levels. Hiccup with Breezethrough over last couple of weeks, what will inventory write-downs be? EM penetration requires lower margins. Doesn't report until September. Worth doing your homework. Hoping they can right the ship and get back to growth.