LuLulemon Athletica (US) (LULU-Q)

Used it as a trading opportunity. Exited back in December when her team saw some weakness in the consumer. Sales grew 21% in China and 20% elsewhere. Margins held up despite inventory headwinds. Pricing power remains strong. Trades below 17x forward PE compared to 5-year average of 27x, undervalued again. Zero debt, lots of cash.

Cautious now, but back on her radar.

It was very sold off so she bought it and sold in December for a 36 to 37% return and not a long hold time. It is now oversold even with the recent guidance cut. She doesn't like the discretionary space but there could be some upside.

Is very surprised shares tanked after reporting (he had recommended buying before the report). They had a bad conference call and quarter. Everything went wrong for them, including tariffs. He expects a corporate shake-up.

It reports Thursday. Are doing a ton of  business in China. Shares are too cheap now.

It peaked in 2023 and got clobbered last year. Then, it got hit with tariffs and shares sank again. Is -25% since last January. It reports next week. Last March's report was actually okay, beating sales and earnings. But we expected that because the company pre-announced results. That's why the street punished it for weak guidance. He remains hopeful, because he expects the 46% tariff on Vietnam, which makes a lot of LULU product, will face a much lower tariff. However, shares have rebounded 18% the past month. They have a strategic plan focused on product innovation, guest experience and market expansion. Expectations are low for this quarter with even some analysts expecting an upside surprise in earnings and same-store US sales. He likes this set up and would buy now.

At 17x PE, this is frantically trying to bottom. You can put a small position on this now.

 It reports Thursday. Many short-sellers are betting they won't sell enough because of their high prices, but this is a remarkable company.

Shares soared 16% today after reporting. China was a key driver. Inventories and loyalty program are doing well. An excellent quarter. They bought back a lot of shares.

Tries to stay away from specialty retailers, though LULU might be an exception. Seems to have bottomed out and is coming back. Tough business. He'd rather own an AMZN.