Is Lululemon’s Stock NOW a "Monster BUY"?

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Күн бұрын

Is Lululemon’s Stock NOW a BUY?
Lululemon's stock price (Ticker symbol: LULU) fell over 15% last week. This drop of Lulu's stock came despite Lululemon reporting strong results for the last quarter of their fiscal year 2023 (which ended in January). The reason for the share price decline of Lululemon? Investors were disappointed with Lululemon's future outlook for the 2024 fiscal year. Lululemon's forecasts for revenue and earnings in the coming year were lower than what analysts expected.
Lululemon shoppers and shippers generally have been spending less on clothes (and other non-essential items) lately. This is partly due to economic concerns. Lululemon has been doing well despite these trends, but Lululemon's recent results and future outlook suggest they might finally be feeling the pinch.
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Пікірлер: 54

3 ай бұрын

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@platoscavealum902 Ай бұрын

@svenhodaka9145 3 ай бұрын

I’ve owned LULU for >10 years. Even at today’s price it’s been more than a 10X return. The current price is a screaming buy if you are a patient long term investor. 📈 LULU is on sale right now at a 30% discount! I would buy their clothes at this discount why wouldn’t I buy the stock? Just sayin’ 🤷‍♂️

@Flyingcabbage101 2 ай бұрын

Cloth on sale usually means losing pricing power

@stevenbond4637 2 ай бұрын

Lululemon is a great company, stock markets be trippin. Up 50% revenue in China in a year, lol. 8% growth in the industry, 30% ROIC. About 260 us dollars per share is the low since June 2020 or so, when revenues were only 40% of what they are now and gross margins were lower too. They have no debt and they are buying back shares every year. They under estimate earnings all the time and buy shares back when they drop. Looks like wall street will be feeding the 'news' stations negativity for the rest of the year on this one, want us to sell them all our shares on the cheap, lol, hopefully it gets back below 250, hell 150 and a PE of 10 or 12, lol, it's not LVMH but this brand won't dissapear in a year, gobble gobble :)

2 ай бұрын

Largely agree with your take.

@UziBert1997 3 ай бұрын

Love your channel!! Keep it up and I’m sure you’ll be big! Great quality information and help us busy retail investors with our DD on individual stocks

3 ай бұрын

Thank you! Will do!

@cricbuzz1123 3 ай бұрын

Wonderful analysis. I agree with you analysis about its MOAT based mainly on its BRAND which may not be long lasting in the space it operates and hence I would also need this to trade at a much lower valuation to be interested in it. Given the strong return on capital employed in the last 10 years, in excess of 30% (WOW), even half of that would do. However I would think of buying it if it ever comes below 275, where the current PE would be below 22.5 and it would trade at half the valuations it has normally traded and would offer me some good margin of safety.

3 ай бұрын

Thanks for sharing! Let's see where the stock goes.

@lekang8179 2 ай бұрын

their stores are always busy in shopping mall, don't know why, but i will definitely put lulu in my watchlist

@gk9670 Ай бұрын

I know when i see world class. You are a class act Rene. Fantastic analysis. So fortunate to hear you.

Ай бұрын

Thank you!

@platoscavealum902 Ай бұрын

I agree

@EverGreenElephant 3 ай бұрын

Bought in 2020 and I'm considering to buy again. Your analysis is excellent! Based on the NTM it's trading for a P/E under 24. This isn't expensive for such a quality business.

3 ай бұрын

I don't consider 24x earnings (optically) cheap either though (obviously there's much more to valuation which I cannot get into here; and the stock might nonetheless be cheap). Thank you for your comment.

@platoscavealum902 Ай бұрын

Thank you

Ай бұрын

You're welcome

@whatabout_carry7911 3 ай бұрын

Great video as always.

3 ай бұрын

Thanks!

@martinithechobit 2 ай бұрын

Even better now.

@jeremynewell9903 3 ай бұрын

As a Canadian, this is a fashion statement that many of us wish would go away ( gymwear that people wear in public ). It started to become popular 10 years ago and it feels like they have saturated their own target market here.

3 ай бұрын

Haha that's an interesting point you make and I agree from a fashion point of view.

3 ай бұрын

What do you think about Lululemon at the current price?

@leswhynin913 3 ай бұрын

I like it at the current price on a risk/reward basis. Pros: great margins,FCf, and ROCE, narrow moat, expansion possibilities in Asia Pacific and Europe, and fair valuation. Cons: buybacks at high prices, risk of changes in fashion trends. I am long LULU

@Allen-L-Canada 3 ай бұрын

@@leswhynin913 fashion trends is not so predictable.

@leswhynin913 3 ай бұрын

@@Allen-L-Canada I agree. But Lululemon has been around long enough in North America to have passed from fad to staple clothing item

@Allen-L-Canada 3 ай бұрын

@@leswhynin913 it all comes down to circle of competence. If you are a fashion trend follower or observer, then you can take the pulse of this industry well. As a fashion dummy, I don't think I have an edge on this industry. 😀

3 ай бұрын

@leswhynin913 All the best. I can see why you are very bullish. Risk reward seems at least decent.

@marcoformica861 3 ай бұрын

More video like this

3 ай бұрын

I’ll try my best

@platoscavealum902 Ай бұрын

🔔 Earnings after the bell, today

Ай бұрын

Let's see what we get!

@platoscavealum902 Ай бұрын

📈 LULU

@ominollo 3 ай бұрын

Brand cult is very very important

3 ай бұрын

Absolutely. How do you assess the sustainability of the LULU cult?

@amyx231 3 ай бұрын

As a consumer, who owns their clothes, umm…. I’ve lost interest mostly. Sorry?

3 ай бұрын

Why?

@Thomas-fk6ep Ай бұрын

Earnings coming up. Are you still bullish on LULU?

Ай бұрын

There‘s not point in trying to predict quarterly results. Try to get the long-term trajectory right.

@Thomas-fk6ep Ай бұрын

Thanks

@riumudamc4686 3 ай бұрын

Trends may be shifting away from Lulu. Recently read that women are no longer seeking brand name gym wear and more interested in functional wear.

3 ай бұрын

Yeah, whether that's directionally true or not is an important question.

@kendalkitchen3560 3 ай бұрын

@my girlfriend makes me go with here there and spends 100s and there is always a line in Ohio I wouldn’t be too sure they are going away

3 ай бұрын

@@kendalkitchen3560 I'm not saying they are going away. I'm just saying that I don't understand the durability of the brand well enough and that the durability of fashion brands in general is often rather fickle.

@Beautiful-Sensation Ай бұрын

Lululemon is falling off because of the apparels quality. The apparel has gone down hill. I mean, the main reason people purchased from Lululemon was because of their buttery soft signature Aligns but now that they have changed the fabric, the switch has ran myself and others off. Plus the colors are repetitive and getting ugly and uglier.

@aaron6806 Ай бұрын

One word answer to the title question of the video: No.

Ай бұрын

Agreed.

@aaron6806 Ай бұрын

A fashion brand with no moat whatsoever, that my wife and her afflient friends do not buy or wear. Some of them have never gotten ove the fact that Chip Wilson is a creep, some just arent dumb enough to think that the clothing is special enough to command such hugh prices. These are women who work hard for their money, have plenty of it, amd aren't easily duped by creeps.