Welcome back. Let's drill down on one retailer, Lululemon. The company's founder, Chip Wilson, taking an ad in the Wall Street Journal, saying the company's in a nose dive and it's losing its soul after nominating and governance committee failed to safeguard the company's long-term vision.So, what is the solution for the athleisure maker. According to Wilson, Lulu needs to put product and brand back at the center. Bring entrepreneurship or entrepreneurial ownership, I should say, back onto the board, empowe ...

Core Insights - The current investment landscape presents opportunities for growth investors despite market volatility, facilitated by modern brokerages that provide access to a wide range of global stocks [1] Group 1: Strategic Reviews and Resets - Companies undergoing strategic reviews can reposition themselves for sustainable growth by focusing on high-potential areas and exiting unprofitable segments [3] - Hongkong Land Holdings announced a strategic review in October, planning to exit the build-to-sell property segment and focus on integrated commercial developments to generate steady income [4] - Singtel has been executing a strategic reset since May 2021, aiming to capitalize on 5G opportunities and improve return on invested capital (ROIC), targeting low double-digit ROIC by fiscal 2026 [5][6] Group 2: Sustainable Trends and Catalysts - Identifying sustainable trends, such as the rise of athleisure, can uncover promising growth stocks, exemplified by Lululemon's revenue growth from US$8.1 billion in fiscal 2023 to US$10.6 billion in fiscal 2025 [9][10] - Mercadolibre's revenue surged from US$10.8 billion in 2022 to US$20.8 billion in 2024, driven by the e-commerce market's projected 19% CAGR from 2022 to 2027 [11] - Coupang's revenue increased from US$20.6 billion in 2022 to US$30.3 billion in 2024, achieving profitability in 2023 with US$1.4 billion in net income [12] Group 3: Large Total Addressable Market (TAM) - Companies with a large TAM, such as ResMed, which aims to serve 500 million people by 2030, present significant long-term growth potential [13][14] - Dexcom targets a growing market for continuous glucose monitoring, with only 5% penetration among Type 2 diabetics not on insulin, indicating substantial room for expansion [15] Group 4: Successful Serial Acquirers - Companies like Hawkins have successfully executed multiple acquisitions, resulting in revenue growth from approximately US$935 million in fiscal 2023 to over US$974 million in fiscal 2025 [18] - Rollins, a pest control company, added 24 businesses through acquisitions in 2023 and 32 in 2024, leading to revenue growth from US$2.7 billion in 2022 to US$3.4 billion in 2024 [19][20]

Company Overview - Actively Black is an athleisure and athletic apparel brand that celebrates black culture and history, and gives back to the black community [4] - The brand aims to be the "black Nike," offering premium quality products comparable to brands like Nike, Lululemon, and Puma [6][7] - Actively Black launched on Black Friday 2020 and has experienced rapid growth since [5] Product & Supply Chain - Actively Black launched a 100% cotton line sourced from black farmers, paying above-market prices for the cotton and labor [14][17] - The company emphasizes a 100% black-owned supply chain for its cotton line, from "seed to stitch" [19] - Tariffs on goods from Asia, particularly China, have significantly impacted Actively Black's business, leading to the exploration of American-made options [20][21] Business Strategy & Challenges - The founder advises against entering the retail clothing business due to its saturation and the challenges of creating a lasting impact [23][24][25] - Actively Black achieved its first three-month period of profitability after four years in business [27] - The company has a 70% return customer rate, which is high for e-commerce apparel brands, because customers see the brand as a representation of themselves [31] Community & Purpose - The brand is purpose-driven, aiming to give back to the black community in a meaningful way, beyond just profiting from black talent and consumerism [9] - Actively Black aims to reclaim ownership of cotton production, creating wealth for the black community and healing from the trauma associated with slavery [18] - The company outfitted Team Nigeria in the summer Olympics [11] Market & Financial Insights - Black Americans spend $30 billion annually on apparel and shoes [17] - High tariffs, such as 145% or 150%, could potentially put small, black-owned businesses like Actively Black out of business [21]

Brand Portfolio and Revenue - Lanvin Group manages a diverse portfolio of 5 iconic luxury heritage brands[10, 21] - In 2024, Lanvin's revenue was €83 million, representing 25% of the group's revenue[16] - Wolford's 2024 revenue was €88 million, accounting for 27% of the group's revenue[17] - Sergio Rossi's 2024 revenue was €42 million, which is 13% of the group's revenue[16] - St John's 2024 revenue reached €79 million, making up 24% of the group's revenue[19] - Caruso generated €37 million in revenue in 2024, contributing 11% to the group's revenue[16] Financial Performance and Challenges - The group's global revenue for FY 2024 was €329 million, a 23% decrease compared to FY 2023[80] - The group's Adjusted EBITDA in 2024 was -€92320 thousand, representing -28% of revenue[87, 132] - The group is implementing measures to reduce G&A expenses and improve working capital management[80] Strategic Initiatives - The group is focused on streamlining expenses and enhancing operational efficiency[77] - The group is upgrading its store network with disciplined new openings and a strategic focus on key markets[97] - The group is aiming to reduce discounts and sharpen product offerings to focus on core and less seasonal categories[95]

Core Insights - Stitch Fix, Inc. (SFIX) has achieved a 10% year-over-year growth in Average Order Value (AOV) in the third quarter of fiscal 2025, marking the seventh consecutive quarter of growth [1][9] Group 1: AOV Growth Drivers - The introduction of larger Fixes, allowing clients to receive up to eight items, has significantly contributed to AOV growth, with adoption more than doubling since the first quarter [2] - Enhanced product assortment, including on-trend styles and categories like footwear and accessories, has fueled higher AOV, with notable sales increases in athleisure (30% year-over-year) and sneakers (35%) [4][9] - The integration of Freestyle and Fix has improved client engagement, allowing clients to start a Fix based on items discovered on the Freestyle platform [5] Group 2: Client Engagement and Personalization - The flexibility offered by larger Fixes enables clients to refresh their wardrobes according to seasonal trends and personal events, enhancing the overall customer experience [3] - The launch of themed Fixes for specific occasions has further strengthened the service's appeal, helping the company understand new customers' preferences from the outset [3] Group 3: Financial Performance - Revenue per active client increased to $542, reflecting a 3.2% rise from the previous year, attributed to strategic investments in pricing optimization and inventory management [6] - The company anticipates tougher year-over-year comparisons in fiscal 2026 but remains confident in maintaining AOV growth through continued focus on client engagement and product innovations [7] Group 4: Valuation Metrics - SFIX is currently trading at a forward 12-month price-to-sales (P/S) multiple of 0.39X, significantly lower than the industry average of 1.69X and below its median P/S level of 0.41X over the past year [8]

Core Viewpoint - Lululemon athletica has been a top-performing consumer stock over the last 20 years, significantly contributing to the growth of the athleisure market and becoming one of the most valuable apparel companies globally [1][2]. Financial Performance - Since its IPO in 2006, Lululemon's stock has increased approximately 1,800%, with over 300% growth in the last decade, although it has recently faced challenges, dropping 48% from its peak [2]. - In the first quarter, comparable sales growth slowed to 1%, with revenue rising 7% to $2.37 billion, matching estimates [3]. - Gross margin improved from 57.7% to 58.3%, but operating income only rose 1% to $438.6 million, with operating margin declining by 110 basis points to 18.5% due to increased expenses [3]. - Earnings per share increased from $2.54 to $2.60, slightly surpassing the consensus estimate of $2.59 [4]. Guidance and Challenges - The company maintained its full-year revenue guidance at $11.15 billion to $11.3 billion, indicating a 6% growth at the midpoint, but reduced its earnings-per-share guidance from $14.95-$15.15 to $14.58-$14.78 due to tariff impacts [6]. - Second-quarter guidance also fell short, with expectations of a 160 basis point decline in operating margin, affecting earnings per share [7]. Growth Opportunities - Despite slowing growth in North America, Lululemon sees significant potential in China, where revenue increased by 21% with 7% comparable sales growth in the first quarter, accounting for 13% of total revenue last year [8][9]. - The company currently operates 154 stores in China, representing 20% of its total, with plans to exceed its initial goal of 200 stores [10]. Investment Perspective - The challenges posed by tariffs are consistent with those faced by other retailers in the apparel sector, suggesting that they may not be a major concern for investors [11]. - Following the guidance cut and subsequent stock sell-off, Lululemon trades at a forward P/E of 18, which is considered attractive given its brand strength and growth potential in China [12].