LULU: Luxury Powerhouse & Multi-Decade Trendsetter
Key Rationale:
Fundamentals remain intact making this a very attractive time to be contrarian, ignore the pessimism and buy the dip. Always nice to buy what you know and can see around you.
Comments:
Proprietary Scores:
GreenBlue Cumulative Rank: 128/2982 (Lower = Better)
GreenBlue Current Rank: 407/2982 (Lower = Better)
GreenRed Rank: 225/499 (Lower = Better)
Gurufocus Score: 97/100 (Higher = Better)
Company Profile:
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Competitors:
ROST, TJX, BURL, GPS, URBN
Risks:
This goes the path of Nike and is dead money for the near future.
Fundamentals remain intact making this a very attractive time to be contrarian, ignore the pessimism and buy the dip. Always nice to buy what you know and can see around you.
Comments:
- Credited with the development of athleisure. Hasn't yet seized Pickleball market opportunity.
- Incessant selling due is unwarranted with one executive departing.
- One of the best available Ex-U.S. stocks.
- Potential tailwind off the back of Ozempic & GLP-1 craze.
- Still a profitability powerhouse with pricing power because of its iconic brand.
- Same-store sales are growing exponentially, and an expansionary opportunity abroad.
- Narrow Moat, Exemplary Capital Allocation.
- Luxury market is different from discount competitors, and luxury brands are seldom cheap.
- 3-Star Valuation on Morningstar, hasn't been this cheap since 2017.
- Stellar Profitability, Growth, and Quality scores in GreenBlue (4, 29, and 125 out of 2982)
Proprietary Scores:
GreenBlue Cumulative Rank: 128/2982 (Lower = Better)
GreenBlue Current Rank: 407/2982 (Lower = Better)
GreenRed Rank: 225/499 (Lower = Better)
Gurufocus Score: 97/100 (Higher = Better)
Company Profile:
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Competitors:
ROST, TJX, BURL, GPS, URBN
Risks:
This goes the path of Nike and is dead money for the near future.
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