2008 #2 ululemon athletica, inc. designs, manufactures, and distributes athletic apparel for women and men. The company offers a line of apparel and accessories, including fitness pants, shorts, tops, and jackets designed for athletic pursuits, such as yoga, dance, running, and general fitness under the lululemon athletica brand name. Its fitness-related accessories comprise an array of items, such as bags, socks, underwear, yoga mats, instructional yoga DVDs, water bottles, and headbands. The company sells its produc
Shares of Lululemon Athletica Inc. (LULU) took a big hit after the yoga apparel retailer reported first quarter results. While earnings per share of $0.12 were in line with consensus and sales were up a healthy 74.5%, the company trimmed its full-year guidance to a range of $0.68 - $0.71 from $0.70 - $0.72 as a result of costs associated with new hires, staff training programs and a bigger push for its showroom strategy.
While the lower guidance will likely push shares of Lululemon lower, RBC Capital Markets analyst Howard Tubin says a buying opportunity may emerge.
I know, I know, with the economy sputtering, why would you ever want to be invested in an apparel company that produces expensive jeans? Let alone have it recommended by a typically short-selling trader like me! But before I tell you the name of this stock that despite the obvious economic problems -- strong oil, weak housing and the dollar, mounting foreclosure, etc -- is sitting right near all-time highs, looking to break out, let's ...
Retail stocks seem to be in a tailspin, the consumer is dead, the economy is taking it on its chin. But don’t tell that to Lululemon Athletica (LULU) which recently announced that sales for its fourth quarter (ending February 2) were up over 100% compared to last year. Despite what even the company’s management concedes [...]
Retail stocks seem to be in a tailspin, the consumer is dead, the
economy is taking it on its chin. But don’t tell that to Lululemon
Athletica (LULU)
which recently announced that sales for its fourth quarter (ending
February 2) were up over 100% compared to last year.<!--more--> Despite what even
the company’s management concedes is a weak retail environment,
expansion continues to be underway as LULU transitions from being a
small Canadian niche player to a broadly accepted women’s sports
apparel authority.
Believe it or not, there are some functions of the consumer slowdownthat benefit t
4/2 - "We are reducing our FY2008 estimate by $0.03 to $0.72 to account for weaker back half comps (same-store sales) as we expect the majority of the beneficial impact of currency on comps to begin to anniversary in 3Q. Management laid out a very strong strategic plan and an achievable outlook, in our view. We remain neutral, as we think the 2009 P/E of 33x is justified by the significant growth potential of the company and nearly mimics our current expected 2009 growth rate of 35%."
"The majority of new stores will be opened in markets where the company already has at least one store. Th...
4/2 - "Upscale fitness apparel retailer lululemon athletica (Nasdaq: LULU) is at peace with investors after coming through with better than expected fiscal-fourth-quarter results...Net revenue more than doubled to $105.1 million during the holiday quarter. Earnings more than quadrupled to $0.21 a share. Analysts expected the Vancouver-based chain to earn just $0.19 a share on $92.7 million in net revenue."
"No, lululemon isn't cheap. Now fetching roughly 45 times this year's profit guidance, mallrats will find cheaper valuations in less specialized concepts...Then again, you don't see any...
Lulu Lemon, a rapidly expanding branded yoga-wear manufacturer and retailer made it's initial public offering back in July 2007. After a strong early showing LULU reached a high of $58/share in October before joining the rest of the market's systematic retracement and is now trading near it's IPO price at $29.49
Lulu's dominant niche brand and aggressive expansion strategy have led to some compelling year-over-year revenue and earnings growth figures. Make no mistake, LULU is strong on fundamentals and at this price, I can't see it being anything other than a BUY.
After a good run up, LULU had a period of profit taking it appears. The gains have been erased in time for a new run up. The sector is depressed now and this may be a bargain waiting to be bought. It may still drop a little more so the timing of the sale is anyone's guess. But I'm guessing this one continues to climb after a brief respit.
Vancouver-based LULU sells clothing to the yoga crowd. For Q2 '07, revenue increased by 80%, and income from operations tripled. They're going to open 25 more stores this year.
The hype for LULU shares should die down over the next couple months, most likely rebounding for the holiday season. The company maintained but did not raise its guidance for earnings estimates which means that there is no compelling reason for new investors to buy the stock at the current time. On the other hand, there is lots of motivation to sell as IPO investors are up close to 100% and there is a lot of risk in stocks these days with all of the economic problems in the US. I would sell now and look to rebuy in a couple of months if you want to continue to own the stock. I expect th...
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About Lululemon Athletica
- Answers.com
I know, I know, with the economy sputtering, why would you ever want to be invested in an apparel company that produces expensive jeans? Let alone have it recommended by a typically 
Despite what even
the company’s management concedes is a weak retail environment,
expansion continues to be underway as LULU transitions from being a
small Canadian niche player to a broadly accepted women’s sports
apparel authority.
