LuLulemon Athletica (LLL-T)

Struggling. Demand is, perhaps, satiated. Started narrow with yoga pants and expanded. Crosses the gender boundaries. Not enough to right the ship.

Just bought it when shares were beat up. Their North American shares have sold this year, due to more competition, a product issue (a new fabric did not flatter customers and has been getting negative reviews), and they're focused on growth in China when the market won't touch anything to do with China. The PE has fallen from 30x to 19x. Strong margins that outpace their peers. They are innovative and one hit product away from success.

Problems lie with product design, and senior people (key designer) leaving the company. But the PE has fallen and she's looking at it. LULU faces strong competition. Wants to see them getting back on track, first. Retail as a whole is very volatile.

Great company, but stock over valued at this time. Would wait for weakness in share price before buying. Ability to generate sales very strong, but recent financials have been questionable. Does not own shares at this time. 

A stock trading well below the 200-day MA prevents him buying. Better-than-feared guidance going forward. Around 23x forward PE. Shares look fair now, but not cheap given the 8.5% growth rate. Trends can change, and some people don't like to pay for expensive clothes that you just sweat in.

Not a good quarter recently, and shares have fallen below the 200-day moving average. A sign of caution. A fewer store visits, reflecting what customers will spend. In fashion, trends come and go. It's always been a pricey stock in terms of PE, though growth is not bad at 20%. Prefers other names.

A volatile name, but excellent products. Historically, can be expensive name to own (valuation high). Overall, is a good retail name to own for the long term. Strong retail footprint across North America. Expanding product line into shoes etc. 

Great performance the past 5 years.
Does not own share because does not pay dividend.
Continues to beat and raise profit expectations.
Entrenched user base.
Growing throughout the world.
Share price expensive at the moment.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS beat estimates by $0.22 at $1.62. Revenues also beat estimates at $1.45B. They posted 30% yoy revenue increases. The company continues to generate positive free cash flow. A very positive quarter. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It raised guidance higher for sales. It is building for the future. Good track record of growth with very high sales growth. Looks good today and could buy at these prices. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Compared to global peers, it is marginally cheaper and it remained highly profitable in the downturn. Growth expectations remain solid. It is not cheap but the balance sheet is strong. Unlock Premium - Try 5i Free

GOOS-T vs. LULU-Q. He follows them. He would like to own LLL-T. GOOS-T has come off their all time highs about 50%. He either needs to see their earnings grow or their stock price drop. He is looking at it. Both are extremely well run companies with strong brands. They have excellent management teams and strong franchises. GOOS-T would be his preference from a valuation perspective.