
NASDAQ:LULU
This summary was created by AI, based on 25 opinions in the last 12 months.
LuLulemon Athletica (LULU) is currently experiencing significant challenges, including disappointing sales and earnings, loss of its leadership position in the athleisure market, and increased competition from cheaper alternatives. The stock has seen a steep decline over the past year, down approximately 65%, with recent guidance indicating continued struggles ahead as same-store sales in North America fell by 5%. Despite these issues, analysts remain cautiously optimistic, noting the brand's strong global presence and potential for a turnaround, especially with new products launching under a new designer. Technical patterns suggest a possible bottoming out, but pressure from tariffs and market volatility adds risk. Investors are advised to accumulate shares slowly, while others express concern over the company's management and overall direction.
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.
The Canadian based athletic clothing manufacturer is stretching its markets internationally, where sales are up over 35% this year. Analysts like that it is trading at 22x earnings -- a 40% discount to its 10 year average valuation. We like that cash reserves are growing, whiles shares are bought back, which supports a 40% ROE. We recommend setting a stop-loss at $200, looking to achieve $324 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $392.54)