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Analysis: VF Corp could make a play for Lululemon

  • A little bit of speculation from ISI Group is going a long way for Lululemon (LULU +2.1%) today.
  • Analyst Omar Saad thinks VF Corp (VFC +1.1%) could make a run at the yoga clothing seller to give it an entry into the athletic apparel segment.
  • Saad thinks a Lululemon purchase at $50 per share (11% premium) could increase VFC's EPS by about $1.05 in the future.
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Comments (14)
  • Welt
    , contributor
    Comments (191) | Send Message
     
    There's no way LULU would accept a $50 per share offer.
    13 May 2014, 01:48 PM Reply Like
  • Zeus2012
    , contributor
    Comments (707) | Send Message
     
    Agree but it'll put a floor under the stock. Been on a bit of a free fall lately.
    13 May 2014, 01:57 PM Reply Like
  • Charles A. Smith
    , contributor
    Comments (1144) | Send Message
     
    Don't be so sure. There are dozens of up and coming yoga/fitnesswear brands steadily stealing market share from LULU...all the way from Sweaty Betty to Dona Jo.

     

    http://bit.ly/1ltJcf3
    13 May 2014, 02:24 PM Reply Like
  • pat45
    , contributor
    Comments (389) | Send Message
     
    Sad that it takes a rumor to move LULU.
    13 May 2014, 04:58 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    This same analyst told me LULU would hit $100/sh before $50/share. I tried to bet him $100. Cheerleaders at best@
    13 May 2014, 01:57 PM Reply Like
  • dmauch
    , contributor
    Comments (10) | Send Message
     
    Omar Saad is not even in the ball park as concerns pricing.
    13 May 2014, 02:23 PM Reply Like
  • asianzone
    , contributor
    Comments (17) | Send Message
     
    That is way too low!
    Visited lululemon new London store over the weekend. Have to say store traffic was there!!
    13 May 2014, 04:14 PM Reply Like
  • scottinno
    , contributor
    Comments (100) | Send Message
     
    Ridiculous speculation lol
    13 May 2014, 04:28 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    No question! Any savvy analyst is not going to throw out such a speculative 'what if" for such an overpriced stock as LULU. Trying to get a dead cat bounce is all he can hope for
    13 May 2014, 04:44 PM Reply Like
  • bronchiti
    , contributor
    Comments (51) | Send Message
     
    Dona Joe & Sweaty Betty eating Lulu's lunch? Enough to take down LULU? Really?
    13 May 2014, 11:44 PM Reply Like
  • Dutchguy
    , contributor
    Comments (9) | Send Message
     
    Under a VFC umbrella, LULU will flourish and grow like a weed. As it stands now, many LULU buyers don't necessarily practice yoga. They are making a fashion statement. Here is question: how many people buying The North Face gear actually use it for what it was designed for? Exactly. Not many.... Eric Wiseman and his executive team at VFC are a perfect acquirer for LULU. Check out their 17 by 17 strategy. This could well contribute to it. Disclosure: I am long VFC.
    14 May 2014, 09:54 PM Reply Like
  • Dutchguy
    , contributor
    Comments (9) | Send Message
     
    Under a VFC umbrella, LULU will flourish and grow like a weed. As it stands now, many LULU buyers don't necessarily practice yoga. They are making a fashion statement. Here is question: how many people buying The North Face gear actually use it for what it was designed for? Exactly. Not many.... Eric Wiseman and his executive team at VFC are a perfect acquirer for LULU. Check out their 17 by 17 strategy. This could well contribute to it. Disclosure: I am long VFC.
    14 May 2014, 09:54 PM Reply Like
  • Lulu fan
    , contributor
    Comments (6) | Send Message
     
    VFC already owns Lucy - a direct lululemon competitor - so not sure why Saad says that they "lack a foothold in the performance athletic apparel market"
    15 May 2014, 01:11 PM Reply Like
  • Mo Money 2011
    , contributor
    Comments (74) | Send Message
     
    I agree on Lucy. Its basically a direct competitor. Why would VCF want two yoga/sport apparel companies under its family of brands?
    1 Jun 2014, 08:30 PM Reply Like
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