Core Viewpoint - lululemon athletica inc. (LULU) has shown strong growth through innovative products and brand loyalty, but its current forward 12-month price-to-earnings (P/E) multiple of 21.23X raises concerns about valuation compared to the industry average of 13.55X [1][4]. Valuation Concerns - The price-to-sales (P/S) ratio of lululemon, combined with a low Value Score of D, indicates it may not be a strong value proposition at current levels [2]. - lululemon's P/E ratio of 21.23X is significantly higher than competitors like Columbia Sportswear (20.23X), Ralph Lauren (18.35X), and Crocs Inc. (7.73X), suggesting that LULU's stock valuation is out of step with its growth trajectory [4]. Recent Stock Performance - LULU's share price has increased by 32.4% over the past three months, outperforming the broader industry's 17.6% rise, the Consumer Discretionary sector's 14.4%, and the S&P 500's 11% [6]. - Currently trading at $315.30, LULU reflects a 39.5% premium to its 52-week low of $226.01 and a 38.9% discount from its 52-week high of $516.39 [7]. Growth Drivers - lululemon aims to reach net revenues of $12.5 billion by 2026, up from $6.25 billion in 2021, driven by its Power of Three X2 growth strategy [10]. - The company expects international markets, particularly Mainland China, to contribute nearly 50% of total revenues by 2026, with plans to quadruple international revenues from 2021 levels [10]. - The men's business is also a growth driver, with a goal to double men's sales from 2021 levels, and a reported 11% revenue growth in the men's category in Q2 fiscal 2024 [11]. Challenges - lululemon faces challenges from inflation, which has led to reduced discretionary spending and struggles in its women's category, impacting its Americas business [12]. - A slowdown in the women's category is attributed to fewer updates to core styles, resulting in lower conversion rates [13]. - The company anticipates cautious near-term results due to the lack of new products in the women's category, reflected in its fiscal third-quarter outlook [13][14]. Financial Guidance - For Q3 fiscal 2024, lululemon expects net revenues of $2.34-$2.365 billion, indicating 6-7% year-over-year growth, with EPS projected at $2.68-$2.73 [14]. - For fiscal 2024, the company anticipates net revenues of $10.375-$10.475 billion, suggesting 8-9% year-over-year growth, and EPS of $13.95-$14.15, an increase from $12.77 in fiscal 2023 [15]. Stability of Estimates - Despite soft guidance, estimates for lululemon have remained stable over the past 30 days, with Zacks Consensus Estimates for fiscal 2024 and 2025 indicating 9.2% and 7.5% year-over-year growth in sales, respectively [16]. Investment Rationale - lululemon's premium valuation and challenges in the Americas raise investor concerns, but its international business momentum and strong performance in the men's category present long-term growth opportunities [18]. - Holding onto lululemon stock is considered prudent, with a focus on the execution of its growth strategy and international expansion efforts [19].

NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Lululemon Athletica Inc. (NASDAQ: LULU) on behalf of long-term stockholders following a class action complaint that was filed against Lululemon on August 8, 2024 with a Class Period from December 7, 2023 and July 24, 2024. Our investigation concerns whether the board of directors of Lululemon have breached their fiduciary duties to the compan ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Lululemon (LULU) , which belongs to the Zacks Textile - Apparel industry, could be a great candidate to consider. When looking at the last two reports, this athletic apparel maker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 7.30%, on average, in the last two quarters. For the last reported quarter, ...

BofA Securities analyst Lorraine Hutchinson reiterated a Buy rating at Lululemon Athletica Inc. LULU with a price target of $355. The analyst says that the data shows that LULU's sales in China have picked up momentum in the third quarter to date, following a slowdown in the second quarter. Notably, Meritco's data shows that Lululemon's China sales increased by 48% in August and 67% in September, with a 98.4% correlation to reported sales. This marks a significant rebound from the second quarter. Although m ...

To win in today's volatile market, careful stock-picking is key. The S&P 500 continues to straddle all-time highs, but the mood is cautious: investing in individual value plays that have lower correlation to the broader market, in my view, will yield much more upside in a With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industr ...

I've always enjoyed working out and until recently, I didn't pay too much attention to the clothes I wore, to me, it was all about getting the exercise done. However, a few months ago, I got a pair of sweatpants from a company I had notI have been involved in investing for the last 10 years, having studied a finance undergraduate, followed by a Master's in international finance, and finally getting the CFA designation. My current job focuses on advising Ultra High Net Worth individuals on how to construct t ...

Michael James McDonald is a stock market forecaster, author and former Senior Vice President of Investments at what is now Morgan Stanley. He is a long-term advocate of the theory of contrary opinion and the measurement of investor sentiment when forecasting price direction.His first book, " A Strategic Guide to the Coming Roller Coaster Market" was published in June of 2000, three months before the top of the dot comm market. On its cover was written, "How a new model of the stock market predicts the end o ...

Analysts see China as one of the biggest opportunities for apparel company Lululemon Athletica Inc LULU. With international sales hitting 50% of total revenue in the coming years, a stimulus in China could offer a potential catalyst to offset macroeconomic concerns. The Lululemon Athletica Analysts: KeyBanc Capital Markets analyst Ashley Owens maintained an Overweight rating with a $350 price target. JPMorgan analyst Matthew Boss maintained an Overweight rating with a $338 price target. Oppenheimer analyst ...

Lululemon (LULU) closed at $278.25 in the latest trading session, marking a +1.71% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%. Prior to today's trading, shares of the athletic apparel maker had gained 5.17% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.91% and lagged the S&P 500's gain of 5.36% in that time. The investment community will ...

lululemon athletica inc. (LULU) stock has shown a marked recovery in the past month, with shares rising as much as 9.6%. With this increase, the company’s shares have outpaced the broader Consumer Discretionary sector and the S&P 500’s rallies of 6.7% and 5.4%, respectively. However, the LULU stock is still slightly short of the industry’s growth of 9.9% in the same period.This Vancouver-based luxury athletic apparel retailer’s shares have shown recovery trends after recording a significant downside since t ...