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LULULEMON ATHLETICA INC.LULULEMON ATHLETICA INC.LULULEMON ATHLETICA INC.

LULULEMON ATHLETICA INC.

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LULU stock was down 40% YTD. Key indicators.Lululemon (Ticker: LULU) Q1 2024 Earnings LULU stock was down 40% YTD, so its Q1 2024 earnings were eagerly anticipated by investors. Key highlights include: Revenue Revenue rose by 10% overall to $2.2 billion, or 11% in constant currency, with significant growth in international markets. Mainland China saw a 52% increase, and the rest of the world grew by 30%. In the Americas, revenue increased by 4% in constant currency, with Canada up 12% and the U.S. up 2%. By category, women's merchandise grew by 10%, men's by 15%, and accessories by 2%. Store sales rose by 12%, and digital revenue increased by 8%. Profitability Gross profit reached $1.28 billion, with a slight gross margin increase to 57.7% due to lower costs and higher product margins. Earnings per share were $2.54, up from $2.28 the previous year. Capital Allocation The company also repurchased nearly $300 million of stock in Q1 and $230 million in Q2 so far, with an additional $1 billion authorized for future repurchases. Guidance Revenue guidance remains at 10% to 11% growth for the year. Management expects to open 35-40 new stores and maintain a steady gross margin. Full-year EPS guidance was raised to between $14.27 and $14.47.
NASDAQ:LULULong
by ShukriMahadi
Lululemon: Still Sweating It Out in the Athleisure Arena?Lululemon: Still Sweating It Out in the Athleisure Arena? Lululemon, once the undisputed queen of the yoga pant kingdom, is facing a new reality in the ever-evolving world of athleisure. While the brand still boasts a loyal fanbase and undeniable brand recognition, questions linger about its ability to maintain relevance against a growing legion of competitors. The Rise and Reign of Lululemon Lululemon's story is one of meteoric ascent. Founded in 1998, the company carved a niche for itself by prioritizing quality and functionality in yoga apparel. Their signature Luon fabric, known for its breathability and sweat-wicking properties, became a game-changer. Lululemon cultivated a community around its stores, fostering a sense of belonging and exclusivity. Their high price points weren't just tolerated, they were seen as a badge of quality. The Changing Landscape of Athleisure However, the landscape has dramatically shifted. Athleisure is no longer confined to yoga studios. It's a mainstream fashion choice, embraced for everything from workouts to errands. This has opened the door for a flood of competitors offering similar – and sometimes more affordable – options. Competition Heats Up Mainstream brands like Nike and Adidas have aggressively expanded their athleisure offerings. Fast-fashion retailers like H&M and Zara are churning out trendy athleisure pieces at a fraction of the price. Upstart brands with innovative materials and designs are also vying for market share. Lululemon is no longer the only game in town. Beyond the ABC Pants Lululemon's reliance on its core products, like the ubiquitous Align leggings and ABC (Anything But Compression) pants, might be holding them back. While these remain popular, they haven't kept pace with the evolving trends. Consumers are looking for a wider variety, from high-performance workout gear to stylish athleisure pieces that seamlessly transition from gym to brunch. The Scrunchie Factor Lululemon's recent forays into accessories like belt bags and hair scrunchies raise questions about their brand direction. While these might generate some additional sales, they risk diluting the brand's core identity as a leader in performance apparel. Staying Relevant: A Path Forward So, has Lululemon lost its relevance? Not necessarily. But they face an uphill battle. Here are some ways they can stay competitive: • Embrace Innovation: Lululemon needs to continue innovating, developing new fabrics and designs that cater to the diverse needs of today's athleisure consumer. • Expand the Product Range: Offering a wider variety of styles and price points can attract a broader customer base. This doesn't have to compromise their core focus on quality, but it does require strategic expansion. • Cater to Different Activities: Lululemon can move beyond the yoga studio and cater to a wider range of athletic pursuits, offering specialized apparel for running, training, and other fitness activities. • Focus on Community: Lululemon's community focus has always been a strength. They can leverage this by creating engaging in-store experiences, hosting workshops, and building a stronger online community. • Sustainability Matters: Consumers are increasingly concerned about sustainability. Lululemon can solidify its position by prioritizing eco-friendly practices throughout their supply chain. Lululemon's legacy in the athleisure industry is undeniable. But their future success hinges on their ability to adapt, innovate, and cater to the market's ever-changing needs. The days of dominance built solely on high-priced yoga pants are likely over. The road ahead requires a focus on product diversification, strategic expansion, and a renewed commitment to staying at the forefront of the athleisure revolution.
NASDAQ:LULUShort
by bryandowningqln
Despite the tepid growth, $LULU surged 10% in extended hours - **Earnings per share (EPS)**: Lululemon reported EPS of $2.54, beating Wall Street's estimate of $2.38. - **Revenue**: The company's revenue reached $2.21 billion, slightly exceeding the expected $2.19 billion. - **Americas Market**: Lululemon faced challenges in its largest market (the Americas), with flat comparable sales. Last quarter, they struggled due to inventory issues in U.S. stores. - **Guidance**: Lululemon issued weak second-quarter guidance, but its full fiscal year outlook suggests optimism for improvement in the latter half of the year. Overall, Lululemon is navigating growth opportunities internationally while addressing challenges in the Americas market. CEO Calvin McDonald emphasized the company's potential for further growth and optimization
NASDAQ:LULU
by KhanhC.Hoang
2
LULU: Luxury Powerhouse & Multi-Decade TrendsetterKey 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: 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.
NASDAQ:LULULong
by RHTrading
Lululemon Stock Sinks 6.38% As Chief Product Officer ResignsLululemon Athletica ( NASDAQ:LULU ) has announced an organizational restructuring, with Chief Product Officer Sun Choe resigning to pursue another opportunity. The company stated that the changes are designed to support the company's growth plans, accelerate product innovation, and enable its go-to-market strategies. Lululemon ( NASDAQ:LULU ) will not replace the CPO position. Global Creative Director Jonathan Cheung will drive the product design and innovation roadmap, while continuing to oversee design, innovation, and product development at the firm. Several analysts have argued that the move is a bad sign for the company, as Lululemon ( NASDAQ:LULU ) faces a slowing apparel market and tough competition. Lululemon shares ( NASDAQ:LULU ) were down about 7% to $299.95 as of 10:21 a.m. ET Wednesday. The stock was down 4.4% premarket Wednesday after the company announced the departure of its chief product officer and said it would overhaul its product and brand teams. Lululemon ( NASDAQ:LULU ) will now have Jonathan Cheung, global creative director, report directly to Chief Executive Calvin McDonald and oversee product design and innovation. Cheung has more than 30 years of experience in senior leadership roles at global brands. Lululemon will also create a new team of leaders from merchandising and brand functions to manage global and regional go-to-market strategies. Nikki Neuburger will become chief brand and product activation manager to oversee merchandising, footwear, and product operations on top of her current responsibilities. Elizabeth Binder, chief merchandising officer, will report to Neuburger. Wedbush analyst Tom Nikic believes the selloff seems overdone and is likely due to how well-liked and well-respected Choe was by Wall Street. Lululemon ( NASDAQ:LULU ) has been a "notable laggard" in Wedbush's coverage this year, with the stock down 37% and the S&P 500 SPX having gained 12%. Choe's reign saw Lululemon's revenue grow by about 4%. Technical Outlook Lulu Lemon ( NASDAQ:LULU ) stock is down 6.47% as of the time of writing trading with a Relative Strength Index (RSI) of 20.47 which is oversold. The stock has been on a falling wedge pattern for over 8 weeks now.
NASDAQ:LULU
by DEXWireNews
Why Lulu Could Plummet to $275 And How You Can Profit From It!As of the latest close, Lululemon Athletica Inc. (LULU) is trading at $322.98, reflecting a notable downtrend over the past several weeks. The stock has seen a recent decline, breaking through critical support levels, and is currently trading well below its key moving averages, signaling a bearish outlook. Recent corporate announcements, including the departure of the Chief Product Officer and the establishment of new executive roles, could introduce uncertainty and volatility. Investors should closely monitor how these changes impact the company's strategic direction and operational efficiency. Price Prediction and Trading Strategy Given the current technical landscape, LULU appears poised for further downside in the short term. However, the oversold indicators suggest that a relief rally could occur before the stock resumes its downward trajectory. Short-Term Price Target: Based on the descending channel pattern and the recent price action, the next significant support level is around $300.00. If the bearish momentum continues, we could see LULU test this level within the next few weeks. Long-Term Price Target: Should the downtrend persist, and if broader market conditions remain unfavorable, LULU could potentially drop to $275.00, aligning with the lower boundary of its long-term descending channel. Trading Strategy: Short Position: Entry: Enter a short position if LULU breaks below $320.00, confirming the continuation of the downtrend. Stop Loss: Set a stop loss at $335.00 to protect against a potential short squeeze. Take Profit: Target the $300.00 level initially, with a secondary target of $275.00 for a more extended downtrend. Long Position (Speculative and Short-Term): Entry: Consider a long position if LULU shows a strong reversal signal and breaks above $330.00 with significant volume, indicating a potential short-term rally. Stop Loss: Set a stop loss at $320.00 to mitigate downside risk. Take Profit: Target $350.00, where the stock may face resistance from the 20-day EMA. Conclusion Lululemon Athletica Inc. (LULU) is currently entrenched in a bearish trend, exacerbated by recent management changes and technical indicators signaling oversold conditions. Traders should remain cautious, employing disciplined stop losses to manage risk. While there are speculative opportunities for a short-term rebound, the prevailing sentiment favors short positions until a clear reversal pattern emerges.
NASDAQ:LULU
by AxiomEx
4
Lululemon ($LULU) Set to Lay-off 128 EmployeesLululemon Athletica ( NASDAQ:LULU ), the Vancouver-based apparel retailer, has announced the closure of its distribution center in Washington state by the end of the year, resulting in the layoff of over 100 employees. The company cited business optimization efforts as the reason behind the closure. According to a WARN notice filed with the state's Employment Security Department, the Sumner distribution center will be shuttered, and 128 jobs will be cut beginning June 21. The move comes as Lululemon ( NASDAQ:LULU ) experiences slowing demand for its premium athleisure in North America, which has resulted in lower orders for sportswear and apparel firms due to excessive inventory levels at sporting retailers. Lululemon ( NASDAQ:LULU ) has stated that some of the employees affected by the closure will be retained and relocated to other facilities, including the recently opened distribution center in the greater Los Angeles area. The retailer had entered into a new lease for an approximately 1.26 million-square-foot distribution center in Ontario city in California in 2021, which will expire in 2039, according to its annual filing. Lululemon ( NASDAQ:LULU ) also owns a distribution center in Groveport, Ohio, while leasing the majority of its other facilities located across the United States, Canada, and Australia. The company's shares have dropped more than 31% so far this year.
NASDAQ:LULULong
by DEXWireNews
Lululemon: Unwarrented Selling Offers Excellent OpportunityNASDAQ:LULU Lululemon Athletica's Q4 performance exceeded expectations, with revenues rising 16% and gross margins growing by 4.3%. However, increased competition and price-conscious consumers have led to a decreased market cap and short-term headwinds. Gross margins remain at 58% leading the industry and showing the prominence of the brand. Lululemon has had great success internationally and continues to grow in Mainland China, and continues to remain a prominent brand in the United States. Full-year diluted EPS came in at $12.20, jumping 83% y/y. With a P/E ratio of 30.57x, this entails a great deal of underlying intrinsic value. During the year, Lululemon opened 56 net new stores, ending the year with 711 stores, showing no signs of slowing down and continues to innovate forward to keep up with competitors. While the retail environment in the United States has been recently challenging, I believe that the long-term fundamentals of the company outweigh any short-term headwinds, and the recent selloff provides an excellent opportunity for value. I encourage potential investors to remain unemotional in volatile price action, and trust the fundamentals and management of a prominent brand and a very cash-positive business. My one year price target remains at the technical support level of $515 with an upside of 44%.
NASDAQ:LULULong
by babytrades_