Lululemon: A Real Head-Scratcher

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About: Lululemon Athletica Inc. (LULU)
by: Leo Nelissen
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Leo Nelissen
Long/short equity, Growth, momentum, medium-term horizon
Summary

Lululemon easily beat sales and EPS expectations and raised its full year guidance.

The company reported strong margin improvements and rapidly rising online sales.

Consumer sentiment is putting pressure on retail stocks in general given that even the most successful companies are being sold off after earnings.

I put this stock on my watchlist to buy once economic indicators start to improve again.

Over the past few weeks, I have discussed quite a few retail stocks. Most of them did quite well while some reported blowout numbers. However, overall, the reaction from traders was quite similar: retail stocks