LULU had a disappointing start to the year with a marginal beat on the top-line but the bottom-line coming in-line with estimates. The company's usual growth catalysts (such as not having to rely on markdowns and the China business) are no longer effective. My updated price target is where the company currently trades, leading to a rating downgrade from a BUY to a HOLD.
LULU's growth is slowing down across all regions, with comparable sales declining in Americas. Management lowered their full-year EPS guidance due to higher tariffs, a major reason for the selloff. LULU's Free Cash Flow has declined for four consecutive quarters.
LULU stock dips post-earnings as tariff concerns, rising costs and soft U.S. demand overshadow solid quarterly results.
Apparel - Retail Industry | Consumer Cyclical Sector | Mr. Calvin R. McDonald CEO | XETRA Exchange | US5500211090 ISIN |
CA Country | 39,000 Employees | - Last Dividend | 12 Jul 2011 Last Split | 27 Jul 2007 IPO Date |
Lululemon Athletica Inc., established in 1998 and headquartered in Vancouver, Canada, is a premier designer, distributor, and retailer of athletic apparel, footwear, and accessories under the globally recognized lululemon brand. Catering to both women and men, the company is renowned for its commitment to quality and innovation, targeting individuals who lead a healthy lifestyle, including activities like yoga, running, and training. Lululemon's expansive global footprint spans across continents, including the United States, Canada, Mainland China, Australia, South Korea, Hong Kong, Japan, New Zealand, Taiwan, Singapore, Malaysia, Macau, Thailand, the Asia Pacific, the United Kingdom, Germany, France, Ireland, Spain, the Netherlands, Sweden, Norway, Switzerland, Europe, the Middle East, and Africa. The brand's diverse sales channels include a wide array of company-operated stores, outlets, an interactive workout platform, partnerships with yoga and fitness studios, university campus retailers, license and supply arrangements, mobile apps, and the comprehensive lululemon.com e-commerce website.