LuLulemon Athletica (US) (LULU)

It's a larger read-through on the state of the consumer. Q1 is partially disappointing, delivering on earnings but need to deliver on guidance. Are concerns. They've disappointed here in the past, but quickly recovered. Shares have fallen below its 200-day moving average.

YTD vs. the market lags, but in the past year is up 59% vs. 30% for the S&P. This will be a gross margin, direct-to-consumer story which he hopes is 15% while he hopes the gross margin is 58%.

He just bought it. A play on the consumer and LULU's brand power. Offers consistent growth, leads returns on invested capital.  They report next week and he expects top and bottom line beats, and operational efficiencies. In contrast, Nike is a turnaround story. In a competitive industry and volatile consumer trends, but generates consistent 20% revenue growth over the last 10 years. Trades at a discount in terms of PE over the last 10 years.

He thinks about it whenever he passes their stores which are always crowded. Will continue to grow, but the high PE stops him from buying it, despite its high margins.

They have the potential to be a great worldwide retailer. He continues to believe in it. 

The bears said their last quarter was bad and yet shares hit an all-time high. This can run further.

The street talks about a slowing consumer, but Lululemon is a higher-end clothing retailer and is not seeing high-income households traded down yet. These rich consumers are in a better place.

It deserves to join the S&P. Lululemon has embedded intself in society and is the one retailer that keeps delivering consistent growth. Lulu benefits from the new weight-loss drugs, and consumers will be attracted to their clothing.

Ranked #3, slightly losing ground since the spring, but it's #1 among wealthy girls.

Magnificent story. Don't misjudge the infectious quality of this brand and its growth rates. Likes it, but it's pricey. You don't want to own retail forever, but you can still buy at these levels.

Retail tends to be a volatile sector. Successful expanding into menswear. Premium-priced products geared to higher-income households. You could buy on a dip. Unit growth potential not as great as for ATZ. 

They delivered a super quarter with China's revenue up 61% among other great comps. This confirms that China's consumers are coming back and reopening. Lulu didn't mention theft/shrinkage at all, which is notable.

They report next week. Let's see if and how they grab more of the international market--that's crucial.

They report Tuesday. Best of breed, but wages could be too hot.

Just last month he signalled a buy, but he just sold it, because he collected a tidy profit. He still likes it. It attracts the luxury consumer, which he remains bullish on, but he took profits. The stock moved up faster than he expected. He will buy it again below $300 for another trade.