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LULU
Lululemon Athletica Inc. - NASDAQ

7/10/2014, 3:42 AM ET
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  • When Life Gives You Lemons, Invest In Lululemon
    Abhinav Davuluri Tue, Jul. 8 5 Comments

    Summary

    • Porter's 5 Forces provide an interesting vantage point when evaluating Lululemon as an investment opportunity.
    • Numerous avenues for growth make recent drop in share price an appealing time to invest.
    • Free Cash Flow to the Firm (FCFF) analysis of Lululemon offers a tangible forecast of share price.
  • Lululemon Would Stay Afloat In An Improving Retail Environment
    Javier Hasse Mon, Jul. 7 7 Comments

    Summary

    • U.S. retail sales had their biggest gain in three years at the end of June, rising 4.6% year over year.
    • Although Nike is the world's largest seller of athletic footwear and apparel, with presence in more than 160 countries worldwide, there are too many reasons not to ignore Lululemon.
    • Lululemon plans to regain the trust of consumers, which increasingly have a negative perception of the brand.
    • Lululemon plans to expand internationally and it has recently opened operations in several countries and we hope foreign exchange risk would be reduced.
  • Lululemon: Can The Case Of A Boomerang CEO Prove Wonders For The Company?
    Abba's Aces Wed, Jul. 2 6 Comments

    Summary

    • Boomerang CEOs such as Steve Jobs and Howard Schultz have previously returned to their positions and dominated their industry.
    • Lulu stock is fairly valued, based on next year's earnings estimates and growth expectations.
    • The company saw its financial efficiency ratios deteriorate from the prior quarter.
  • Lululemon: Who Doesn't Love Yoga Pants?
    Ganggas Harjianto Fri, Jun. 20 18 Comments

    Summary

    • Lululemon is trading nearly 50% down from its all-time high from last year and is a valuable opportunity to capture.
    • Lululemon's current underlying problems lie in its management, posing a risk to the company's growth going forward.
    • Still, Lululemon is a premier brand in its industry and a diversifying product line and continued international expansion will help in the future.
  • Laurent Potdevin Threw Out The Kitchen Sink In Lululemon's First Quarter
    John Ford Wed, Jun. 18 1 Comment

    Summary

    • Foreign cash repatriation, weak Q2 guidance, and further management departure announcements point to a "kitchen-sink quarter" for Potdevin’s first.
    • Lululemon trades at a discount to competitors based on EV/EBIT, EBIT margins, and organic revenue growth.
    • The firm has a clean balance sheet and is attractively positioned as a pure play in the high-growth yoga apparel market.
  • Lululemon Looking Less And Less Lovely In 2014
    Don Dion Tue, Jun. 17 16 Comments

    Summary

    • LULU has yet to recover from its prior PR disaster, involving the CEO blaming female customers for the “sheerness” of the company’s fabrics, due to their stretching out the products.
    • LULU’s stock has plummeted 16%, following a low profit outlook for 2014 and is increasingly underperforming its competitors and the industry overall.
    • We suggest investors sell LULU until the returning, outspoken CEO has laid out a clearer path for recovery.
  • Lululemon Athletica's Founder Chip Wilson Sending The Right Signals
    Middat Yildiz Tue, Jun. 17 19 Comments

    Summary

    • Lululemon has a divided boardroom and a principal-agent problem.
    • The stock (LULU) is a "SELL".
    • Turnaround is likely to take much longer.
    • Mr. Chip Wilson publicly announced his disapproval of the company’s board and its strategic vision; he has a point.
  • Lululemon's $450M Share Buyback Program Creates Some Value For Shareholders
    Pim Keulen Fri, Jun. 13 17 Comments

    Summary

    • The company announced a $450M share buyback program.
    • It is not likely that the company will take on debt to finance the program.
    • The company's share price and P/E ratio have dropped sharply.
    • Lululemon seems undervalued in a historic perspective and compared to its competitors.
    • The timing of the program seems to be great, creating value for the shareholders.
  • The Lululemon Decision: What Would A Woman Do?
    Mark Gomes Fri, Jun. 13 28 Comments

    Summary

    • After consulting with Jamie Nuss (PTT Research's Fashion/Trends Analyst), we determined that Lululemon might be doomed to the same fate playing out between Coach and Michael Kors.
    • Competitors like Victoria's Secret has emerged with the fits and feel that women seek, eliminating the advantage that enabled Lululemon to take the world by storm.
    • With falling operating margins and customer defections, the stock may be oversold in the short term, but a dour secular trend is firmly in place.
  • Lululemon Athletica - Another Disappointment And CFO Departure Might Create An Opportunity
    The Value Investor Thu, Jun. 12 9 Comments

    Summary

    • Lululemon's shares fall again after the company cuts its full-year guidance.
    • Shares are down 50% compared to last year's highs.
    • Strong balance sheet and continued growth makes the valuation rapidly more appealing.
  • Lululemon Seen As Recovering Faster Than Anticipated
    Leigh Drogen Wed, Jun. 11 3 Comments

    Summary

    • After a few years checkered with bad PR, Lululemon is starting to settle in again under new CEO Laurent Potdevin who took the helm in January.
    • This quarter Wall Street is predicting Lululemon will report its second straight quarter of flat earnings compared to last year.
    • At the same time sales are expected to grow by 10%, signaling weaker margins than reported last year.
  • Is Lululemon Poised To Beat The Whisper Number?
    WhisperNumber Wed, Jun. 11

    Summary

    • The whisper number is $0.31, two cents behind the analysts' estimate.
    • Whispers range from a low of $0.26 to a high of $0.35.
    • The overall average post earnings price move is positive.
  • Is Lululemon Athletica Setting Up For Lower Prices?
    Carl Cachia Wed, Jun. 11 19 Comments

    Summary

    • Company profile, latest earnings report and the future presented.
    • Technical analysis on LULU, followed by competition in the field.
    • Risks shorting LULU.
  • Why Nike Should Buy Lululemon
    Sammy Pollack Sat, Jun. 7 23 Comments

    Summary

    • Lululemon is a strong brand that would be a good fit for Nike.
    • Lululemon is currently trading at reasonable valuations.
    • Nike is trading at a high valuation and should issue stock to buy Lululemon.
  • Is Lululemon Getting Left Behind?
    Abba's Aces Mon, Jun. 2 8 Comments

    Summary

    • The company is fairly valued while having great near- and long-term earnings growth expectations.
    • There appears to be increased competition in the space with Dick's Sporting Goods encroaching in the territory.
    • ISI Group believes Lulu could be a take out target at $50.
  • Lululemon: A Trendy Retail Line With Substantial Growth
    Shawn Arshad Mon, Jun. 2 14 Comments

    Summary

    • LULU will have 600 stores by 2023.
    • Did the 2013 recall leave a footprint on the 2014 fiscal year?
    • Does management change have anything to do with the 52 week low? Or is it the lack of patents on their products?
    • Why did a large proportion of institutions and large funds purchase shares in March 2014?
    • With more conservative estimates and management change, will July 12, 2014 fair better than Q4 2013 results?
  • Lululemon: Is This A Buying Opportunity?
    Jeff Williams Thu, May. 8 10 Comments

    Summary

    • Even with the sell-off, how do Lululemon's fundamentals look?
    • At this time, does Lululemon trade at an attractive valuation?
    • When will a buying opportunity present itself?
  • Is It Time To Bottom-Pick In Lululemon?
    Abba's Aces Fri, May. 2 18 Comments

    Summary

    • The stock is fairly valued on 2015 earnings estimates and growth expectations.
    • The stock has best in class ROA and third best ROE in the industry.
    • The stock may be at a bottom at these prices.
  • A Fair Valuation Of Lululemon And Its Business Prospects
    Victor Liang Tue, Apr. 8 20 Comments

    Summary

    • Lululemon's stock was greatly impacted by merchandise issues and management changes last year.
    • Lululemon's revenue growth rate will not be as high as before, but it should still grow due to new store openings in the U.S.
    • A more reasonable revenue compound annual growth rate should be around 16% to 26% for the next few years.
    • The stock is slightly undervalued or fairly-valued based on my estimate of its fair value and its P/E compared with its peers.
LULU vs. ETF Alternatives
Company Description

Lululemon Athletica Inc is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. Its yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names.