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Lululong

Lululemon ($LULU) Slides After Q2 Earnings; Key Levels to WatchLululemon Athletica Inc. (NASDAQ: NASDAQ:LULU ) experienced a sharp pullback early Friday despite posting better-than-expected earnings in Q2. The activewear giant’s outlook and revenue missed analysts' expectations, fueling investor concern. Fundamental Analysis Lululemon (NASDAQ: NASDAQ:LULU ) reported Q2 earnings of $3.15 per share, a 17.5% increase year-over-year, surpassing the FactSet consensus estimate of $2.93 per share. Revenue rose 7% to $2.37 billion but fell short of the expected $2.4 billion. Despite the earnings beat, Lululemon’s revenue growth has slowed over the past two quarters, raising concerns about the company's ability to maintain its momentum amid rising competition and shifting consumer behavior. Q3 and Full-Year Guidance: A Mixed Bag For Q3, Lululemon (NASDAQ: NASDAQ:LULU ) guided revenue to be in the range of $2.34 billion to $2.365 billion, representing a 6% to 7% growth rate, with earnings projected between $2.68 and $2.73 per share. This was slightly below analysts' expectations of $2.70 per share on $2.4 billion in sales. Lululemon’s full-year sales guidance of $10.38 billion to $10.48 billion also missed the market consensus of $10.6 billion, while the earnings outlook of $13.95 to $14.15 per share was aligned with estimates of $14.01 per share. Key Concerns: Slowing Growth and Competitive Landscape Earnings and revenue growth have decelerated, reflecting broader market trends such as weakened consumer spending amid inflationary pressures. Comparable store sales increased by 2%, below the anticipated 5.9%. The company also faces rising competition from other athletic apparel brands and general retail slowdowns, impacting sales growth. Additionally, Lululemon’s missteps, such as the troubled launch of its Breezethrough leggings, have weighed on investor sentiment. Technical Analysis Lululemon’s stock has been on a steep decline, dropping nearly 49% year-to-date. However, shares showed signs of breaking this downtrend in premarket trade on Friday, climbing 4.6% to retest key technical levels. Descending Channel and Moving Averages Since gapping below the 200-day moving average (MA) in late March, Lululemon (NASDAQ: NASDAQ:LULU ) has traded within a descending channel, marking a persistent multi-month downtrend. In recent weeks, the stock attempted a breakout but faced resistance near the channel’s top trendline and the 50-day MA. Premarket trading indicates a potential retest of these areas, setting up a pivotal moment for the stock. Key Technical Levels to Watch 1. $272 Resistance: This level coincides with the descending channel’s top trendline and the downward-sloping 50-day MA. A decisive move above this could signal a breakout, prompting further buying interest. 2. $293 Target: The next significant resistance lies around $293, close to the 23.6% Fibonacci retracement level from the December high to the August low. This level also aligns with key lows in May and July, suggesting potential selling pressure. 3. $335 Region: Should momentum carry Lululemon higher, the $335 level near the 38.2% Fibonacci retracement could be the next target. This area could see resistance from notable swing highs and lows in April and June. 4. $371 Long-Term Target: A sustained uptrend could see the stock approach the 50% Fibonacci retracement level at $371, where profit-taking might occur. This level aligns with April’s countertrend peak, situated near the descending channel’s upper boundary. Conclusion Lululemon faces a challenging road ahead as it seeks to regain investor confidence amid slowing growth and competitive pressures. While the company’s earnings beat expectations, its cautious outlook and revenue shortfall highlight broader industry challenges. On the technical front, key levels could determine the stock’s next move, with a potential breakout above $272 setting the stage for a more extended rally. Investors should closely monitor these technical markers alongside Lululemon’s ongoing strategic initiatives and broader economic trends to gauge the stock’s recovery prospects.
NASDAQ:LULUShort
by DEXWireNews
LULU breakout level!LULU is squeezing on multiple time frames and is getting ready to fire. We are also in a wolf wave pattern with a price target of 350.70 (green dotted line). Today, it formed a doji after a full body candle on the previous day which signals a bullish uptrend ahead of its earnings. We might see LULU get into the earnings run soon! Looking for this wolf wave to pan out in the next couple weeks. If you're planning on getting into this option trade, I'd go 2-3 weeks out. I'll update this as we go. Suggested contracts: LULU 4/30 350C @ 1.25 LULU 4/30 340C @ 2.40
NASDAQ:LULULong
by Ross-Santos
LULU -- waiting for pullback to enter longI like LULU, and so does all the gym goers and yoga goers especially if COVID restrictions start to loosen up over the next month or two approaching spring and summer. Long term I like LULU long, but for now, I'm going to be patient and wait for a slight pullback to a better demand buying level. If we can get a pullback A B C pattern back to the 350's, I'll look to enter long a month or two out with some call debit spreads. If the pullback comes, I'll watch for the trend support line to hold, adding to any positions if it holds and some consolidation builds, strengthening corrective A B C count as valid. Game plan: let (hope) for a slight pull back here. Long term, I think LULU can have a nice stretch up to the $480 price range if a full impulse wave plays out through wave v. My first targets up will be 386 and 407. I'll be bullish above 355. Invalidation / potential corrective pattern fully playing out if price goes below 345.
NASDAQ:LULULong
by PT_Marche
Lululemon (LULU): The Channel of the Yoga Apparel IndustryIf you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight. In this post, I will be providing an in-depth analysis on Lulu Lemon Atheletica Inc. (LULU), by going over its business model, financials, and technicals as well. What is Lululemon Athletica Inc. (LULU)? Lululemon is a company that provides technical athletic apparel for yoga, running, training and most other sweaty pursuits. They differ from other apparel companies in that they offer extremely high end products. M&A (Mergers and Acquisitions) of Mirror - Lululemon acquired the indoors fitness company Mirror for $500m. - Mirror is a company that offers an interactive mirror, which live streams on-demand workout classes for their users at home. - Classes cost $39 per month - Essentially, LULU will be offering a very similar subscription service business model to that of Peloton (PTON) Business Models Athleisure Products - LULU’s main business model is in the athleisure (athletic leisure) apparel industry - They are called the Channel of the yoga apparel industry, not because they simply offer overprices clothing, but because they know exactly who their target audience is - They target not only people who like to wear yoga pants for workouts, but also people who want to look good in these clothes. - Their main target, however, are people who pursue ‘mindfulness’ through activities - There’s definitely a show-off aspect to the apparel as well, as people wear it with pride even on normal occasions. - While trends change, it appears that the athleisure look won’t be fading away anytime soon. - The athleisure market for men is growing as well, as the entire market grows 8% every year, with the potential to reach $517.5 billion according to Grand View Research Direct to Consumer - Another fact noting is that they operate in D2C (Direct to Consumer) - They own the sales channels for online and offline consumers - During this pandemic, they have reinforce their offline sales channels by offering online yoga classes, and introducing SNS-linked shopping features. - As a result, while offline stores’ revenues have decreased by 48% during the pandemic, online D2C sales have increased by 67%, and their online sales have exceeded their offline sales Subscription Service - LULU offers a new subscription service through Mirror - The mirror is a screen that plays fitness instructional videos - It’s anticipated that the revenue generated from Mirror will be around $100 million this year - According to the Bank of America, LULU will be able to raise $700 million in revenue and a subscriber base of 600,000 by 2023. - There’s a lot of synergy to be expected through LULU Lemon’s acquisition of Mirror, as the demographics of people who purchase $400 yoga pants and $1500 worth mirrors match – high income demographics interested in exercise Financials - LULU has shown a 17% yoy revenue increase from their North American regions - Their 2020 Q1 earnings were extremely disappointing as their shops have been directly targeted by the Corona Virus (COVID-19), but a revenue turnaround is anticipated for Q4 - For 2021, we can anticipate LULU’s revenue to hit $4 billion, with their Earnings per Share (EPS) at $4.23 - LULU shows astonishing EPS growth, as it has essentially doubled since 2018. - Not having a middleman for their distribution channel significantly increases their operating profits as well, with their current percentage at 22% - much higher than its counterparts such as Adidas (ADS) or Nike (NKE) - 88% of their revenue is generated from North American countries: Canada and the United States - The company’s market capitalization is valued at 57 times its net profit, based on the 12 month Forward P/E ratio - This is strong evidence for the argument that the company is overvalued. Opportunities -Given that we could anticipate a 28% yoy growth in the Chinese Pilates Market, LULU’s not having expanded to Asian and European markets yet suggests great opportunities for growth - Since 2012, the Chinese population interested in Pilates has doubled to 12.5 million by 2019, and the Pilates apparel market has quadrupled to 9.7 Billion Chinese Yuan. - The founder of LULU invested $100million in Anta – the Chinese Nike- acquiring 0.6% of the company’s share, in regards to their potential penetration of the Chinese market - Anta does offer some Pilates related clothing, but does not have a Pilates apparel brand. Competition -LULU’s demographics also match with that of Peloton (PTON), and as such, we could anticipate fierce competition between the two firms -They are also in a fierce competition with Athleta, a company that designs performance clothes for active women. Athelta is owned by GAP (GPS) Technical Analysis - We can take a look at LULU's daily chart for technical insight - LULU has bounced on the $288 historic support, currently ranging between the 0.236 and 0.382 Fibonacci retracement levels - Should we see further downfall, we could expect a bounce at the $265 historic support - The 20 Simple Moving Average (SMA) is about to form a death cross with the 60 SMA, which has been acting as a strong indicator for uptrends and downtrends - The Relative Strength Index (RSI) demonstrates the stock having been oversold recently - The Moving Average Convergence Divergence (MACD) shows decreasing bearish histograms, and a potential for a golden cross - We have seen these indicators point towards the same direction when the company was hit by the Corona Virus Pandemic, before moving on to triple in price - While the overall trend still remains bullish, we would need further bullish confirmations to gain confidence on the uptrend - Such confirmations would include a breakout leading prices to trade above the 60 SMA, or a close above the 0.236 Fibonacci resistance Conclusion Lululemon Athletica Inc. (LULU) is an apparel company that moves like a tech stock. It has extremely high potential, as it implements business diversification through its acquisition of Mirror, and is yet to expand to highly lucrative markets with huge potential such as the Asian and European markets. As I have previously mentioned, ironically, it’ll be the luxury brands/companies that survive through hard times like these. Economic crises is when polarization deteriorates, and spending on luxurious goods increases. LULU does a great job of communicating with its customers and bringing more people in, and as such, their fundamental business model of a luxury brand remains solid.
NASDAQ:LULULong
by Michael_Wang_Official
2
LULU - 8.49% Potential Profit - Ascending TriangleClear uptrend Support with an Ascending Triangle formed within. Target price set at a new potential resistance line. I suggest entering with a Buy Limit order. If limit is not triggered, I wouldn't chase the run. - Historical uptrend - RSI + Stoch well above 50 - MACD above Signal. Suggested Entry $332.94 Suggested Stop Loss $326.66 Target price $361.20 Note that I tend to adjust stop losses in order to secure profits early and preserve capital. This means that the target price is going to be achieved as long as there are no strong pullbacks that trigger my new adjusted stop loss.
NASDAQ:LULULong
by maschera
1
Lulu long Here is an easy ta for Lulu long: As you can see easly- Lulu in up-trend. Stock had high volume compared with strong move to 325 § mark, bounced off and since that consolation. We have support on 284 $ Mark (S1) and resistance on 325 $ mark (S2). You can identify this as a consolation zone, so next step should be a clear break through ATH. Indicators: BB: Are close after big movement, cosolation, next move could be strong, neutral signal 20 SMA: Trend is moving above, bullish signal 50 SMA: Trend is moving under, bearish signal (works as resistance) 200 SMA: Wide above, bullish signal MACD: Close to 7, Neutral signal RSI: Close to 80, oversold (is normal in up-trend) Volume: neutral, no signal Option play: Sell put 232 $, 272 $ buy call 330 $ Swing trade: Trade the swings in consolation channel Long-Term: Wait for pull back on 284/290 support, or wait for breaking through ATH after 325 $ mark Good luck for you trading :)
NASDAQ:LULULong
by Hornetcharts
LULUWill watch LULU tomorrow and see what kind of action happens. Think if it holds this demand it currently is in, which aligns with .32 fib retrace, possibly a good opportunity to grab some calls for the upside for wave “c.” If current demand fails, will wait for it to drift down to next level demand. If gaps up in the overnight, like this market seemingly likes to do both up and down, will see what price does if it shoots to the upside price target / supply zone around the $215 area.
NASDAQ:LULU
by PT_Marche
3