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Lululemon Athletica Inc. (LULU)

  • Wed, Apr. 15, 1:13 PM
    • Piper Jaffray corralled over 6K teenagers to take a pulse on the consumer spending trends of the demographic.
    • The group had a slightly higher rate of part-time employment than a year ago and continued to show a strong preference for online shopping.
    • Standouts brands with teenagers include Lululemon (NASDAQ:LULU), MAC Cosmetics (NYSE:EL), Victoria's Secret (NYSE:LB), Nike (NYSE:NKE), Ralph Lauren (NYSE:RL), Urban Outfitters (NASDAQ:URBN), privately-held Forever 21, and Michael Kors (NYSE:KORS).
    • Vineyard Vines continues to be a teen favorite as it slices off a larger piece of the teen spending pie. The privately-held company is up to 48 stores and 97 retail locations.
    • Department store chains didn't resonate particularly with the teenager crowd in the Piper survey.
  • Mon, Apr. 13, 12:36 PM
    • Nike (NKE -0.2%) has launched its largest global marketing effort to date aimed at women.
    • The #BetterForIt campaign launched with an ad (video) during last night's MTV Movie Awards featuring everyday women - instead of famous athletes and supermodels.
    • The company has 70M women in its digital community already giving it an ample crowd to target before even stepping outside the Nike ecosystem.
    • Execs have gone on record as saying Nike can grow women's sales by 40% to $7B by 2017.
    • Nike's increased push into women's products is being watched to see if has an impact on Lululemon (LULU -0.7%) with its higher price points.
    • Lululemon is also looking for growth in new markets and categories as tougher comps loom in the second half of the year.
    • The athleisure market is seen by many as growing fast enough to keep investors of both Nike and Lululemon satisfied.
    • Nike is +40.1% over the last 52 weeks and Lululemon is +31.4%.
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  • Sun, Apr. 12, 3:31 PM
    • The elitist part of the fashion world needs a wake-up call over the exclusion of plus-sizes for many lines, according to a biting op-ed piece in The Business of Fashion penned by Nicolette Mason.
    • "The largest problem is the fashion industry’s attachment to the idea that fashion should be protected for a hyper-privileged slice of the population," writes Mason.
    • Many retail analysts think the industry is missing out on maximizing revenue due to its reluctance to pull away from the older ideas on what sells.
    • Lululemon (NASDAQ:LULU), Abercrombie & Fitch (NYSE:AF), Ralph Lauren (NYSE:RL), and Prada (OTCPK:PRDSF, OTCPK:PRDSY) have been singled out in the past for missing the category.
    • Some retail brands a step ahead in promoting plus-sized apparel include Target (NYSE:TGT), Lane Bryant (NASDAQ:ASNA), Old Navy (NYSE:GPS), Nordstrom (NYSE:JWN), Torrid, Avenue Stores, and Cato (NYSE:CATO).
  • Fri, Apr. 10, 11:55 AM
    • Sales per shopper increased 5.8% Y/Y in March at retail chains, according to data from RetailNext.
    • Average transaction value was up 3.5%, while the number of conversions improved by 0.9%
    • Total sales were off 3.2% on a 8.2% drop in traffic amid a problematic month for weather. The tallies don't include e-commerce.
    • Higher-end store chains such as Lululemon (LULU -0.5%), Tiffany (TIF +0.3%), and Williams-Sonoma (WSM +0.5%) can benefit from the trend toward highly-focused shoppers - while traffic-dependent chains such as Family Dollar (FDO +0.1%), Dollar General (DG +0.6%), and Dollar Tree (DLTR +0.4%) rely on the impulse buys churned up by increased traffic.
  • Wed, Apr. 8, 7:36 AM
    • Lululemon (NASDAQ:LULU) is upgraded by Sterne Agee to a Buy rating from Neutral.
    • Cowen Research is also out with positive comments on the athleisure juggernaut. Analyst Oliver Chen met with management to take in how long-term margin drivers and opportunities with men's lines exist.
    • LULU +1.33% to $67.29.
  • Tue, Apr. 7, 2:47 PM
    • Global clothing stocks are outperforming broad market averages on the day.
    • There was some positive commentary out early from Credit Agricole which may have set up the sector for some bids.
    • Demand has been improved of late in some Asian markets, while F/X challenges continue to be a large drag for some sellers.
    • On the expense side, cotton prices are 28% below the level of a year ago.
    • Gainers: Lululemon (LULU +4.2%), Sequential Brands Group (SQBG +6.8%), PVH Corp. (PVH +1.6%), Iconix Brand Group (ICON +1.2%), Ralph Lauren (RL +1.3%), G-III Apparel (GIII +2.1%), Michael Kors (KORS +2%).
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  • Mon, Mar. 30, 10:02 AM
    • Lululemon (LULU +2.1%) trades higher in early action as the stock recovers from a mini-slump last week.
    • The company's new line of men's pants are a "smash hit" with consumers, according to CNN Money.
    • Other publications are also giving Lululemon some free pants publicity.
    • The $128 slacks are made with a high-tech fabric and are being promoted as comfortable in all the right places.
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  • Fri, Mar. 27, 7:56 AM
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  • Thu, Mar. 26, 9:47 AM
    • Execs with Lululemon (NASDAQ:LULU) outlined during the firm's earnings conference call the transitory impacts to profit that the company expects to outlive.
    • The formats of U.S. stores will be improved this year with more larger stores set to be unveiled. New concepts are being tested.
    • The company sees a net F/X impact to EPS this year of $0.04 after factoring in Canada, Australia, and SG&A spending.
    • Product delays tied to weather and the West Coast port issue are expected to drift into Q2.
    • The new larger-sized stores will see a lag effect before profitability catches up to deleveraged costs.
    • E-commerce sales were 18% of total sales last year.
    • 60 new stores are planned for this year.
    • Long-term comp growth in the mid single-digit range is forecast.
    • Shares of LULU have recovered from a premarket slip and are up 3.04% as the earnings call helps turn the focus on the long-term story.
    • Previously: Lululemon Athletica beats by $0.05, revenue in-line (Mar. 26 2015)
    • Previously: Light guidance trips up Lululemon (Mar. 26 2015)
    • Earnings call webcast
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  • Thu, Mar. 26, 6:55 AM
    • Lululemon (NASDAQ:LULU) reports direct to consumer revenue increased 20% Y/Y in Q4.
    • Comparable-store sales were up 5% for the period.
    • The company's gross profit rate fell 200 bps to 51.5%.
    • SG&A expenses rate +150 bps to 25.4%.
    • Inventory +10.2% to $298.2M.
    • Guidance: Lululemon sees Q1 revenue of $413M to $418M vs. $442M consensus and EPS of $0.31 to $0.33 vs $0.39 consensus.
    • LULU -5.64% premarket to $57.52.
  • Thu, Mar. 26, 5:43 AM
    • Lululemon Athletica (NASDAQ:LULU): Q4 EPS of $0.78 beats by $0.05.
    • Revenue of $602.5M (+15.6% Y/Y) in-line.
    • Press Release
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  • Wed, Mar. 25, 5:30 PM
  • Mon, Mar. 23, 8:44 AM
    • Lululemon (NASDAQ:LULU) peels off almost 3% in premarket trading after Canaccord Genuity lowers its price target to $55 in a cautionary note.
    • The investment firm thinks a slow start to the year will lead to a guidance revision from the yoga juggernaut.
    • The estimate for 2015 EPS is taken by Canaccord Genuity to $1.96 from $2.08.
    • The Street consensus is at $2.07.
    • LULU -2.7% premarket to $63.80.
  • Sat, Mar. 14, 12:29 PM
    • A vibrant secondary market exists for Lululemon (NASDAQ:LULU) clothes, according to an illuminating report from
    • The brand scored very high, along with high-end lines, on pricing and consumer demand in data culled from clothing reselling sites.
    • Racked's deep dive into the market showed Lululemon was the only label in the athletic apparel space to see items hold value or even sell for higher prices when resold.
    • Retail watchers think Lululemon's strong reputation for delivering technical pieces that fit well and its propensity to refresh its products frequently are partially behind the booming Lululemon underground market.
    • It's also a trend supportive of the notion that Lululemon can keep its premium pricing in place even with new competitors entering the category.
  • Fri, Mar. 6, 9:55 AM
    • Shares of Lululemon (NASDAQ:LULU) are off 4.40% today off of a harsh take from Goldman Sachs, but some retail watchers are asking why.
    • Within the apparel sector, Goldman Sachs tagged PVH Corp. as a Conviction Buy with a $160 price target last year in March only to downgrade shares to Neutral earlier this week with the trade off over 10%.
    • The investment firm was also idling in Neutral on LULU as shares ran up 56% over the last six months.
    • SW Retail Advisors' Stacey Widlitz calls the GS revelation on the impact of Canadian currency on Lululemon profits "stale" news.
    • Previously: Meet your new Lululemon bear: Goldman Sachs
  • Fri, Mar. 6, 8:11 AM
    • Goldman Sachs downgrades Lululemon (NASDAQ:LULU) to a Sell rating in a biting note to investors.
    • The investment firm calls growth expectations for Lululemon "unrealistic" and sees limited upside for margin expansion.
    • Lululemon bulls are sure to play up the M&A potential on the apparel chain with VF Corp. and Nike rumors persisting.
    • GS has a price target of $52 on LULU.
    • LULU -3.08% premarket to $62.85. YTD +16.2%.
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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.