Road Less Invested
Long/short equity, deep value, value, special situations

Lululemon: Quality Issues More Extensive Than Reported

With its recent close of $75.78, lululemon's (NASDAQ:LULU) stock price has more than recovered from the recent "pants-gate" scandal and is within striking distance of its all-time high. In fact, the stock is currently over 10% above its pre-pants-gate closing price of $68.48 on March 15th. This recent rally in share price is on the back of:

    Market digestion of on balance positive Q4 results Management's presumably proactive and quick response to quality issues appear to have minimized both shortage delays as well as brand and reputational damage. Analysts are now expecting product to return to shelves faster than anticipated (here) News that noted retail specialist and billionaire investor Steve Mandel's Lone Pine Capital has increased ...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details