Lululemon has been having a rough time this year. Their stock went down more than 40%. Revenue growth has slowed for several quarters in a row, and their latest profit guidance didn’t meet expectations. Even though its forward P/E has dropped to around 13.8, which is way below Nike’s 39, there doesn’t seem to be much buying interest. Now they’ve got another issue. Tariffs are expected to cut around 240 million dollars from their full-year profit.
I used to be pretty bullish because of their strong brand and overseas expansion, but now I’m not so sure.
Posted by Only_Pilot_284
19 Comments
Every number looks like dogshit.
I bought a bunch. I think they have the name brand recognition and capital to bring on executives that will turn it around. I have no true numbers to back it up, only vibes
Too many competitors at a better price point and still have the quality that Lulu had before they got profit obsessed. They will just keep losing market share
It’s on my radar from a strictly swing trading perspective.
From value standpoint I cannot believe it’s still over $20b
Overpriced, under engineered crap that you can find cheaper and better pretty much anywhere that sells women’s clothes. On top of that, their brand has felt pretty irrelevant for the past 3-4 years, at least. Investing in them now feels like investing in the maker of Stanley cups in a few years, once the hype is basically fully dead. Maybe overseas expansion could help, but presumably competitors are also shipping overseas, so I wouldn’t hold my breath.
I mean they could bounce like what Nike did. I think it’s unrealistic people think Lulu will reverse and shoot back to all time highs. If I’m wrong I’ll eat my words but I just personally don’t see it happening.
Fashion is so fickle, one day you’re in style and then you’re gone the next. Also there really isn’t any moat here besides your brand. Wasn’t Costco basically replicating Lulu and selling them for cheaper? What’s stopping Shein from doing the same?
People love cheap shit. Just look at Walmart and their knock off of the Birkin. People were calling it the Wirkin and made them look like fools. The birkin sells for 400k usd. The Wirkin was sold for 80 usd.
If companies can make a mockery of your product and basically replicate you and sell it for dirt cheap. I don’t really see a competitive advantage here.
I don’t follow this scene that closely but from what I’ve seen others do. It is not a very nice field. It’s ultra competitive.
It’s spandex pants they were never going to stay rapidly growing and are very easily replaceable.
My wife used to love buying lulu a couple years ago, now she doesn’t buy them and is onto the next brand. Take that how you will.
Could have said this about underarmour in 2017
It might go to 100$ before going back up
High end work out fashion? Common everyone buys lower priced via Amazon.
Here’s the daily LULU post lol.
The stock is down for a reason. It’s a athletic fashion company that doesn’t have the legacy that Nike or Adidas does. But they are going out of style fast(at least, in the US)
100-130 load zone. Until then stay out!
The founder is not very popular in Vancouver nowadays..
Margins on apparel are already shit. Yes, even for premium brands like lulu. Tariff impacts will be felt stronger next year. I wouldnt want to be in lulu’s ship but if you think this might be the bottom then good luck
every time people talk about this stock I think they are deLULU
I see a lot more Vuori being worn on the streets
Burry bought it recently. I’m seeing a lot of value investor guys say that the earnings weren’t as bad as everyone is acting because there was an EPS beat. The other thing is that tariffs are eating into profits. I’m long, but this could just as well go the way of PTON where it’s super boujie exercise stuff that comes down to reality for a minute.
I see a post like this every other hour come on guys, just type it in the forums search page. Lots of info 😉 thank me later.
Lulu made the decision to sacrifice quality for higher profit margins and the secret is out. It’s almost impossible to put that genie back in its bottle. Incredibly greedy and shortsighted practice. I’d run far away from it.