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Lululemon Athletica Inc. (LULU)

  • Today, 12:52 PM
    • Lululemon (LULU +0.4%) is still well-positioned despite some growing concerns the strong growth trends in athletic apparel are set to wane, according to Oppenheimer.
    • The investment firm makes the case in a new note to investors that Lululemon will be able to hold its 15% market share in the U.S. and has significant international upside not fully priced into shares.
    • SA contributor Equity Watch broke down the long-term bull case on LULU last month in an article that still resonates.
    • LULU trades at $62.91 vs. a 52-week range of $37.81 to $72.00.
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  • Yesterday, 10:37 AM
    • Retail all-stars are firing back up the momentum engine as sentiment improves on global and U.S. growth.
    • Michael Kors (KORS +4.5%), Lululemon (LULU +4.1%), and Under Armour (UA +4%) are all well in front of market averages. The trio has shown above-average volatility over the last two weeks as concerns on consumer spending trends in the U.S. and demand in Asia have cropped up.
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  • Fri, Aug. 21, 10:06 AM
    • Apparel stocks trade weaker than broad market averages as investors reset expectations on some sector favorites.
    • Nike (NKE -1.5%) and Under Armour (UA -1.7%) are both lower despite positive comments by the Foot Locker CEO during a post-earnings conference call on demand trends for the athletic shoe brands.
    • Skechers (NYSE:SKX) is down 3.4% after announcing a stock split, while Lululemon (LULU -1.6%), Kate Spade (KATE -0.4%), Michael Kors (KORS -1.9%) and Sequential Brands Group (SQBG -1.1%) are all extending yesterday's losses.
  • Tue, Aug. 4, 2:15 PM
    • Adidas (OTCQX:ADDYY, OTCPK:ADDDF) and Dick's Sporting Goods have both introduced new activewear lines aimed at young women.
    • The Adigirl Collection from Adidas was unveiled last week, while Dick's is gearing up for the launch of Chelsea Collective later this year.
    • Lululemon (LULU +0.9%) is already well-established in the market for technical athletic wear for girls through its 60-store Ivivva chain.
    • Ivivva delivered a 29% comp in Q1.
    • Previously: Dick's Sporting Goods launches athleisure concept (July 20)
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  • Tue, Jul. 28, 11:23 AM
    • Retail stocks are in-line with market averages despite a soft read on consumer confidence and more stock market losses in China.
    • The S&P Retail ETF (NYSEARCA:XRT) is up 0.26%, while Wal-Mart (NYSE:WMT) is 0.48% higher.
    • Some high-end retail stocks are putting in surprising gains including PVH Corp (PVH +1.7%), Michael Kors (KORS +1%), Ralph Lauren (RL +1%), Lululemon (LULU +2.4%), Luxottica (LUX +2.2%), Kate Spade (KATE +1.3%), Burberry (OTCPK:BURBY +2.1%).
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  • Thu, Jul. 23, 11:47 AM
    • Select retail stocks are outperforming the broad stock market and retail ETFs which are mostly pointing negative.
    • Retail outliers today include Lululemon (LULU +1.3%), Gap (GPS +1.7%), Kate Spade (KATE +2%), and Abercrombie & Fitch (NYSE:ANF) with a 1.1% gain.
    • Under Armour (UA +8.3%) is in a league all of its own after an earnings smash.
    • Previously: Strong growth across the board at Under Armour (Jul. 23 2015)
    | 1 Comment
  • Wed, Jul. 22, 10:57 AM
    • Lululemon (LULU +0.1%) is introducing its own limited edition beer next month as it doubles down on its marketing efforts toward men.
    • The company will sell 88K cans of Curiosity Lager in Canadian liquor stores through a partnership with a local brewer.
    • Comparable-store sales for the men's business were up 19% Y/Y in Q1 as the retail chain continues to test new formats and product lines.
    • Fears that the Lululemon logo, the stylized "A" that looks like curls, would hold back demand have proved unfounded.
    • LULU +12.7% YTD.
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  • Mon, Jul. 20, 9:47 AM
    • Dick's Sporting Goods (DKS +1%) announces the planned launch of a new women's fitness boutique concept.
    • Two Chelsea Collective stores will open next month.
    • Chelsea Collective will sell women's products from Nike along with a number of upstart niche brands.
    • "I view this as a space that is only starting to explode," says the Dick's exec tasked with leading the new concept.
    • A broader athleisure move by Chelsea Collective could serve as new competition for Lululemon (LULU +0.5%).
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  • Thu, Jul. 16, 10:12 AM
    • Some popular momentum-driven retail stocks are starting off the day in reverse with Michael Kors (KORS -2.7%), Coach (COH -0.2%), Pacific Sunwear (PSUN -1.9%), Vera Bradley (VRA -3.3%), Fossil (FOSL -0.6%), Lululemon (LULU -0.6%), Kate Spade (KATE -0.4%) and Under Armour (UA -3.5%) all lower.
    • While OTR Global is with a fresh note on UA and KORS in which expectations are reeled in, pricing trends and China are also looming over the sector.
  • Thu, Jun. 25, 1:38 PM
    • Lululemon (LULU +0.3%) recalls close to 318K women's tops with drawstrings in the U.S. and Canada due to the risk of an injury if the draw cord is pulled tight and released.
    • The company's quality control is watched more carefully after a yoga pants manufacturing mishap proved costly.
    • Shares of LULU seem unfazed by the sudden attention from regulators on the firm's drawstrings.
    • CPSC recall notice
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  • Tue, Jun. 23, 12:42 PM
    • Jefferies met with the executive team at Lululemon (LULU +2.5%) to get an update on the direction of the retailer.
    • The investment firm believes both the tops and bottom categories will show improvement as some supply chain and sourcing issues are resolved. Traffic and conversion rates also appear to be improving.
    • Headwinds on margins include the cost of larger stores and international expansion. Markdowns on extra inventory could also drag down gross margin rate.
    • Jefferies keeps its rating at Hold while it waits for inventory issues to work themselvesout.
  • Fri, Jun. 12, 8:34 AM
    • Sterne Agee thinks the sale of Lululemon (NASDAQ:LULU) founder Chip Wilson's block of shares is a long-term positive for the company.
    • Wilson had been pressing Lululemon for corporate governance changes and has made noise about board representation.
    • Analyst Sam Poser called Wilson a "disruptive" influence over the company.
    • Wilson's sales will give him plenty of start-up cash for new clothing venture Kit and Ace which is attempting to carve out a new category called technical luxury.
    • Earlier this week, Barron's called into question valuation on Lululemon after digesting the apparel seller's earnings report and guidance.
    • LULU fell 1.1% yesterday and trades about 6% off its 52-week high.
    • Previously: Lululemon founder to sell block of shares (Jun. 11 2015)
  • Thu, Jun. 11, 7:59 AM
    • Lululemon (NASDAQ:LULU) files to sell 20.109M shares of common stock on the behalf of selling shareholder Chip Wilson and his family.
    • Chip Wilson is the founder of Lululemon.
    • The company won't receive any of the proceeds from the transaction.
    • SEC Form 424b
    • LULU -4.0% premarket to $64.09.
  • Tue, Jun. 9, 2:29 PM
    • Execution is back on track at Lululemon (NASDAQ:LULU) after the company suffered disruptions over the last year, execs tipped during the firm's earnings call.
    • Sales accelerated near the end of the quarter for the retailer.
    • Inventory levels are expected to stay high for the next few quarters.
    • The company factored in some cost to moving excess inventory into its guidance.
    • The push into men's apparel is starting off strong with comparable-store sales up 19% in the category.
    • Previously: Lululemon Athletica beats by $0.01, beats on revenue
    • Previously: More on Lululemon's Q1
    • Lululemon earnings call transcript
    • Shares of LULU are up 9.2% to $67.27 as the company gets a pass for guidance slightly below consensus. Management's reputation for lowballing estimates may be playing a factor.
  • Tue, Jun. 9, 6:44 AM
    • Lululemon (NASDAQ:LULU) reports direct to consumer revenue rose 27% to $83.6M (+31% on a constant dollar basis) in Q1.
    • Comparable-store sales increased 6% (on a constant dollar basis).
    • Gross profit rate fell 230 bps to 48.6%.
    • SG&A expenses rate -20 bps to 32.5%.
    • Operating income rate declined 210 bps to 16.1%.
    • Inventory +33.33% to $236.5M.
    • Store count +53 Y/Y to 316.
    • Q2 Guidance: Net revenue: $440M to $445M; Total comparable sales: high single digits (on a constant dollar basis); Tax rate: 30.2%; Diluted EPS: $0.31 to $0.33; Diluted weighted-average shares outstanding: 142.3M.
    • FY2015 Guidance: Net revenue: $2.0B to $2.05B; Total comparable sales: mid single digits (on a constant dollar basis); Tax rate: 30.2%; Diluted EPS: $1.86 to $1.91; Diluted weighted-average shares outstanding: 142.4M.
    • LULU +2.81% premarket.
  • Tue, Jun. 9, 5:50 AM
    • Lululemon Athletica (NASDAQ:LULU): Q1 EPS of $0.34 beats by $0.01.
    • Revenue of $423.5M (+10.1% Y/Y) beats by $4.56M.
    • Press Release
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Company Description
Lululemon Athletica Inc is a designer and retailer of technical athletic apparel operating in North America and Australia. Its yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names.