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3 Top Stocks That Could Double by 2028
The Motley Fool· 2025-08-16 12:00
Core Viewpoint - Wall Street may be significantly underestimating the growth potential of certain companies, with opportunities for stocks to double in value within three years if investors identify the right characteristics [1][2]. Group 1: Lululemon Athletica (LULU) - Lululemon has faced challenges, with its stock down 62% from its peak, yet it continues to report growing sales and healthy margins, with analysts expecting meaningful earnings growth in the next two years [4][5]. - The stock could potentially double if the price-to-earnings ratio increases from the current 13 to 26, suggesting a target share price of $422 based on a $16.91 earnings estimate for the next two years [5]. - Revenue grew 8% year-over-year on a constant currency basis, with management maintaining a full-year revenue growth guidance of 7% to 8% [6][8]. - Despite external pressures on margins, Lululemon's premium brand positioning has historically allowed it to maintain a higher gross profit margin than competitors, indicating a competitive advantage [7]. - Lululemon has a loyal customer base and has shown resilience in past challenges, suggesting it is undervalued at around $200 [9]. Group 2: Dutch Bros (BROS) - Dutch Bros is rapidly expanding, with plans to reach 2,029 stores by 2029, aiming for a total of 7,000 stores in the long term [11]. - The company reported a 28% year-over-year revenue increase in Q2 2025, with same-shop sales up 6.1%, and net income growing 73% to $38.4 million [12]. - Dutch Bros' growth strategy includes beverage innovation, advertising, and a loyalty program, with mobile ordering recently launched [13]. - If Dutch Bros achieves a compound annual growth rate (CAGR) of 25% over the next three years, revenue could reach $2.8 billion, potentially doubling its current figures [14]. Group 3: Lyft (LYFT) - Lyft has improved significantly since its 2019 IPO, achieving profitability and expanding into Europe, while innovating its product offerings [15]. - In Q2, Lyft's revenue rose 11% with a 14% increase in rides, marking its ninth consecutive quarter of double-digit ride growth [16]. - Net income increased from $5 million to $40 million year-over-year, with adjusted EBITDA rising 26% to $129 million, indicating strong financial performance [17]. - Despite a flat stock price over the last three years, Lyft's business improvements suggest that investors may be undervaluing its recovery potential, with significant upside from the Freenow deal in Europe [18].
2 Growth Stocks That Wall Street Might Be Sleeping On, but I'm Not
The Motley Fool· 2025-08-15 16:27
Core Viewpoint - Despite strong revenue growth, Lululemon and Roku are currently undervalued in the market, presenting potential investment opportunities as they recover from recent declines in stock prices. Group 1: Lululemon Athletica - Lululemon's shares have dropped over 60% from their peak and recently hit new 52-week lows, indicating a disconnect between brand strength and stock price [4] - The company has achieved a compound annual growth rate of 19% in revenue and 24% in earnings over the past decade, showcasing its competitive position in the athletic apparel market [5] - The athletic apparel market is projected to grow at an annualized rate of 9% through 2030, with a total market value of $406 billion in 2024, indicating significant growth potential for Lululemon [6] - Lululemon reported a 7% year-over-year revenue increase in the first quarter, demonstrating resilience amid weak consumer spending [7] - The stock is considered undervalued with a forward price-to-earnings ratio of 13, and a return to previous peak levels could more than double investments made at current prices [8] Group 2: Roku - Roku's stock has underperformed despite growth in its streaming platform, with shares currently priced at $84, down from a pandemic high of $490 [10][11] - The company has invested in ad technology and partnerships, which are beginning to yield positive results, as evidenced by double-digit growth in platform revenue and streaming hours [12][14] - Roku serves over half of all U.S. broadband households, with users spending over 35 billion hours watching content last quarter, reflecting strong engagement [12] - The growth rate in video advertising on Roku's platform outpaced the broader U.S. digital ad market, indicating a strategic advantage in capturing ad spending [13] - Management is optimistic about Roku's prospects for 2026, citing improvements in EBITDA margins and a 79% year-over-year growth in adjusted EBITDA for Q2 [14][16]
What's Wrong With Lululemon Stock?
The Motley Fool· 2025-08-15 08:28
The clothing brand's stock keeps dropping further and further from highs. At one point in time, Lululemon (LULU -2.65%) was a darling of the stock market, loved by investors, with shares trading up over 3,000% from its initial public offering (IPO) around 20 years ago. No longer. The stock has collapsed and it now trades at one of its lowest valuations ever, driven by a narrative around increased competition in athleisure apparel and declining category sales in North America. Lululemon stock now trades down ...
Should You Buy The Dip On These Large-Cap 'Left-Behind' Stocks Like UnitedHealth And The Trade Desk?
Benzinga· 2025-08-14 18:41
Group 1: Market Overview - Changing market themes and sector rotations have left some formerly dominant companies trailing the broader rally, raising questions about whether these "left behind" stocks represent a buying opportunity [1] - Bespoke Investment Group identified large-cap "left behind" stocks, highlighting that some well-known companies have performed poorly recently [2] Group 2: Company-Specific Insights - UnitedHealth Group, facing cost pressures and regulatory challenges, is currently trading at five-year lows, with a 57.4% decline from its 52-week high of $630.73 to $268.92, but analysts believe its market dominance and revenue potential could lead to a recovery [3][7] - Lululemon Athletica has seen a significant drop due to shifting consumer trends and increased competition, yet it retains strong brand equity and growth prospects, particularly in international and male apparel segments, suggesting a potential entry point for long-term investors [4] - The Trade Desk continues to show strong revenue growth despite challenges in the digital advertising sector, with a 61.6% decline from its 52-week high of $141.53, and analysts argue that the stock may be undervalued, presenting an opportunity for investors willing to overlook recent volatility [5][7] Group 3: Investment Strategy - Analysts suggest that some of the identified "left behind" stocks are likely to recover over the next year, emphasizing the investment strategy of buying low and selling high [6]
Down 60%, Is the Worst Over for Lululemon Stock? The Answer May Surprise You.
The Motley Fool· 2025-08-14 10:01
A valuation that gets more and more appealing Lululemon's stock price trajectory would make you think the business is collapsing, but as we can see, that is not happening. The brand has a lot of room to keep growing in China and wiggle its way into new geographies in the coming years. A new storefront in Milan's flagship shopping district is a big investment and shows how eager Lululemon is to expand into Europe. Investors are getting pessimistic about this beloved athleisure brand, which could make the sto ...
1 Beaten-Down Undervalued Growth Stock Down 63% to Buy Hand Over Fist Right Now in August (2025)
The Motley Fool· 2025-08-14 10:00
Tariffs and other macroeconomic factors are mostly to blame for the declining stock price, creating an excellent opportunity for long-term investors. *Stock prices used were the afternoon prices of Aug. 10, 2025. The video was published on Aug. 12, 2025. In a hot stock market, bargains like this are hard to find. ...
跌跌不休的lululemon,能否靠男人拯救?
3 6 Ke· 2025-08-14 02:44
lululemon真的要被中产抛弃了吗? 在6月初发布的2025财年第一季度报告中,lululemon陷入了增收不增利的困境,同时还对全年业绩预期进行下调。由于实际市场表现出人意料,lululemon 在公布财报的第二天股价大跌近20%,市值创下过去五年以来的历史新低。 究其原因,曾经在国内市场靠网红营销抢占消费者心智的lululemon,随着消费者日渐理性、可供选择的品牌也越来越多,自身的稀缺特性不再明显,甚 至有更多的人早已开始追求平替产品。再加上lululemon本身并没有太深的技术护城河,遭到多方势力的围剿自然也就不足为奇。 为了自救,主打中产女性用户靠瑜伽裤起家的lululemon,开始把目标放在广大男性消费者的身上。 "瑜伽裤界爱马仕"跌落神坛 起初,没有人会想到,一个只卖瑜伽裤的服装品牌能够在国内掀起运动热潮。 公开资料显示,lululemon2013年正式进入国内市场并于上海新天地开出了首家门店,随后陆续在北京等其他一线城市扩张。凭借"瑜伽裤界爱马仕"这一品 牌定位,lululemon在中国市场备受消费者追捧,门店也迎来迅猛增长。 得益于在消费市场的亮眼表现,lululemon在2022年7月 ...
贸易政策不确定冲击北美鞋服品牌
Jing Ji Ri Bao· 2025-08-13 21:58
Core Viewpoint - The U.S. consumer spending is weak due to trade policy uncertainties and macroeconomic conditions, significantly impacting the performance of North American footwear and apparel brands [1][2]. Group 1: Company Performance - Under Armour reported a 4% year-over-year decline in revenue for Q1 of fiscal year 2026, totaling $1.1 billion, with a projected 6% decline for Q2 [1]. - Crocs, known for its "Croc" shoes, reported a net loss of approximately $428 million for Q2, with North American revenue down 6.5% year-over-year, and expects a further decline of 9% to 11% in Q3 [1]. Group 2: Impact of Tariffs - The U.S. tariffs on imports from countries like Vietnam and Indonesia have raised costs for major brands such as Nike, which estimates an additional $1 billion in costs due to tariffs [2]. - Gap anticipates an increase in costs between $250 million to $300 million due to the tariffs [2]. - Retailers may need to raise prices by 10% to 12% to offset these costs, which will ultimately affect U.S. consumers, particularly those with lower incomes [2]. Group 3: Consumer Behavior and Market Dynamics - U.S. consumers are cautious with non-essential spending, leading to decreased foot traffic in stores and a preference for cheaper alternatives [3]. - The footwear and apparel industry faces a dilemma: raise prices to maintain profit margins or absorb costs, which would severely impact profitability [3]. - A letter signed by 76 footwear brands, including Nike and Adidas, was sent to the White House, indicating that tariffs pose a "survival threat" to the industry [3].
lululemon's Inventory Play: Streamlining or Straining Growth?
ZACKS· 2025-08-13 18:22
Core Insights - lululemon athletica inc.'s inventory strategy for Q1 2025 aims to balance product innovation with macroeconomic pressures, resulting in a 16% year-over-year increase in unit inventory and a 23% rise in dollar inventory due to higher average unit costs from tariffs and foreign exchange impacts [1][8] - The company is focusing on new product introductions, such as the No Line Align and Daydrift trousers, which have received positive consumer feedback, while also managing inventory levels to protect full-price selling and market share [1][8] - Despite a strong inventory position, lululemon has indicated potential risks, including U.S. traffic softness and a cautious consumer outlook, leading to a higher markdown forecast for the second half of fiscal 2025 [2][8] Inventory Management - lululemon's inventory build is strategic, with 40% of purchases in core products that can be adjusted based on demand, allowing for flexibility in inventory management [3] - The company is committed to its five key activities—yoga, running, training, golf, and tennis—through innovation and maintaining full-price sales discipline [3] - Competitors like NIKE and Under Armour are also adjusting their inventory strategies, with NIKE reducing inventories by 13% year-over-year and Under Armour aligning inventory more closely with demand trends [4][5][6] Financial Performance - lululemon's shares have decreased by 49.5% year-to-date, compared to a 32.2% decline in the industry [7] - The forward price-to-earnings ratio for lululemon is 12.87X, which is higher than the industry's 10.33X [9] - The Zacks Consensus Estimate indicates a 1.5% year-over-year decline in earnings for fiscal 2025, with a projected growth of 7.5% for fiscal 2026 [10]
lululemon vs. Ralph Lauren: Which Premium Apparel Brand Holds the Edge?
ZACKS· 2025-08-13 16:26
Core Insights - lululemon athletica inc. (LULU) and Ralph Lauren Corporation (RL) are key players in the premium apparel market, each with strong brand equity and loyal customer bases [1][2] lululemon athletica inc. (LULU) - LULU has established itself as a leader in the premium activewear segment, benefiting from robust international growth, particularly in China and other global markets, while also gaining market share in North America [4][6] - The company's strategy focuses on product innovation, category expansion, and digital excellence, with successful product launches and investments in e-commerce driving direct-to-consumer sales [5][6] - In the first quarter of fiscal 2025, LULU achieved revenue growth at the high end of guidance, supported by disciplined inventory management and reduced markdowns [6] - The Zacks Consensus Estimate for LULU's fiscal 2025 sales suggests a year-over-year growth of 5.6%, but the EPS indicates a decline of 1.5% [11][14] Ralph Lauren Corporation (RL) - RL maintains a significant share in the global premium lifestyle and apparel segment, supported by a diverse portfolio and a loyal, multi-generational customer base [7][10] - The company is investing in brand elevation, digital acceleration, and international expansion, with digital channels increasingly contributing to sales [8][10] - In the first quarter of fiscal 2026, RL reported positive direct-to-consumer comparable sales across all regions, with strong growth in Asia and Europe [10] - The Zacks Consensus Estimate for RL's fiscal 2026 sales implies year-over-year growth of 4.6%, with EPS growth of 18.2% [11][14] Performance Comparison - Over the past three months, RL's stock recorded a total return of 11.1%, significantly outperforming LULU's decline of 38.9% [17] - LULU trades at a forward P/E multiple of 12.87X, below its 3-year median of 27.04X, while RL trades at a forward P/E of 20.25X, reflecting investor confidence in its brand equity and growth potential [21][24] Analyst Sentiment - Ralph Lauren is viewed as the stronger contender due to its solid three-month return, healthy growth prospects, and consistent execution of strategic initiatives [25][26] - lululemon, while impressive in product innovation and customer loyalty, faces near-term pressures indicated by downward estimate revisions and projected earnings softness [26][27]