Vuori reached a $5.5 billion valuation after an investment round led by General Atlantic and Stripes. Private equity's interest in the athleisure company comes at a time when many investors are fleeing the consumer sector, indicating Vuori's profitable business model is setting it apart from competitors.
Explore the exciting world of Lululemon Athletica (LULU 0.22%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
Lululemon Athletica (LULU 0.59%) has risen up the ranks and successfully carved out a niche in the competitive apparel sector. Its shares have been a big winner, climbing 672% in the past decade (as of Dec. 12), a gain that beats the broad S&P 500.
Lululemon Athletica (LULU 0.59%) has not had a good year, to say the least. While the S&P 500 has climbed 27% in 2024 (as of Dec. 12), the premium athleisure brand has seen its shares head in the opposite direction.
Lululemon's stock has declined nearly 20% YTD due to overvaluation concerns and poor financial growth, despite better-than-expected Q3 earnings. The company's earnings quality is questionable, with significant investments in working capital and increased cash conversion cycles, affecting operating cash flows. Rising inventory levels, potential gross margin pressures, and increased competition from brands like Alo Yoga and Vuori pose significant headwinds.
Lululemon (LULU) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
LULU's fiscal Q3 results reflect continued gains from the strength in international business and the Canada market. An upbeat outlook drives its momentum.
We believe that the internet retail company eBay (NASDAQ: EBAY) is currently a better pick over the apparel retail company, Lululemon stock. Although these companies are from different industries, they belong to the consumer cyclical sector and share a similar revenue base of around $10 billion.
Lululemon Athletica Inc.'s Q3 performance exceeded expectations, with EPS up 46.4% y/y and gross margins expanding by 150 bps, driving a 16% stock rally. Despite stabilized declines in the Americas, international markets, especially China, showed robust growth, offsetting US headwinds and boosting overall performance. Valuation remains attractive with a forward P/E of 28.2x, suggesting a price target of $451, representing a 13% upside from current levels.
U.S. growth may be continuing to slow, but athleisure retailer Lululemon reported strong sales cross its international markets, notably China, leading to a 9% increase in sales year-on-year.
After a 33% decline so far this year, at the current price of around $342 per share, we believe Lululemon (NASDAQ: LULU), a company designing and selling athletic and casual apparel - could bounce back in the longer term but its short term outlook has limited upside potential. In comparison, LULU's peer Nike's stock (NYSE: NKE) is down 27% since the beginning of this year.
LULU Q3 results show strong revenue growth from momentum in international and Canada regions, with EPS boosted by better-than-expected gross margin performance.