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Franklin Street Advisors Exits $22.8 Million Lululemon Stake As Apparel Stock Slides
The Motley Foolยท 2025-10-09 17:57
Core Insights - Franklin Street Advisors sold its entire position in Lululemon Athletica for an estimated $22.8 million during the third quarter, liquidating 95,891 shares [2][7] - Lululemon's stock price is currently $174.09, reflecting a 36% decline over the past year, significantly underperforming the S&P 500, which has increased by 16% in the same period [3][7] Company Overview - Lululemon Athletica is a leading global retailer in athletic apparel with a strong e-commerce platform, focusing on expanding its omnichannel footprint [6][10] - The company has a market capitalization of $20 billion, with a trailing twelve months (TTM) revenue of $10.9 billion and a net income of $1.8 billion [4] Financial Performance - In its second-quarter 2025 results, Lululemon reported a 7% year-over-year revenue increase to $2.5 billion, driven by a 22% growth in international sales, while sales in the Americas rose only 1% with comparable sales down 4% [8][11] - Operating income fell by 3%, and profit margins contracted by 210 basis points to 20.7% [11] - The company anticipates modest revenue growth of 3% to 4% for the third quarter and has warned that higher tariffs could reduce annual gross profits by approximately $240 million [12] Investor Sentiment - The decision by Franklin Street Advisors to liquidate its position indicates growing investor concerns regarding Lululemon's slowing U.S. growth and declining profitability [7] - The stock's recent pullback may present an opportunity for investors, contingent on management's ability to execute a turnaround and enhance global momentum to counter domestic weaknesses [12]
Lululemon Athletica (LULU) Slid Amid Sales Slowdowns
Yahoo Financeยท 2025-09-30 13:01
Core Insights - Diamond Hill Capital's "Select Strategy" reported a positive but underperforming return of 7.31% (net) in Q2 2025 compared to the Russell 3000 Index's 10.99% [1] - The overall market saw a rebound with the Russell 3000 Index rising approximately 11%, driven primarily by large-cap stocks [1] Company Performance - Lululemon Athletica Inc. (NASDAQ:LULU) experienced a one-month return of -10.54% and a 52-week decline of 32.78%, closing at $179.11 per share with a market capitalization of $20.907 billion on September 29, 2025 [2] - The company faced a challenging quarter with slowed sales both in the US and internationally, contributing to its status as a bottom performer in the portfolio [3] Investment Sentiment - Despite recent struggles, Diamond Hill Capital believes Lululemon remains a relevant brand and is trading at an attractive discount to its intrinsic value [3] - Lululemon is not among the top 30 most popular stocks among hedge funds, although the number of hedge funds holding its shares increased from 48 to 55 in the last quarter [4]
lululemon Stock: A Good Time To Start Accumulating (NASDAQ:LULU)
Seeking Alphaยท 2025-09-14 08:10
Group 1 - Lululemon Athletica (NASDAQ: LULU) reported strong fundamentals, indicating it remains a profitable company with a solid balance sheet [1] - The analysis suggests that the recent quarter's performance may have been exaggerated, implying potential overreaction in market sentiment [1] - The investment strategy discussed emphasizes a long-term horizon of 5-10 years, focusing on a mix of growth, value, and dividend-paying stocks, with a particular interest in value stocks [1] Group 2 - The analyst expresses a potential interest in initiating a long position in LULU within the next 72 hours, indicating a positive outlook on the stock [2] - There is no current ownership of stock or derivatives in LULU by the analyst, which may suggest an unbiased perspective in the analysis [2]
X @The Wall Street Journal
Product Features - The product is comfortable and versatile, suitable for more than just athletic activities [1]
2 Growth Stocks That Wall Street Might Be Sleeping On, but I'm Not
The Motley Foolยท 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]
Under Armour Q1 Earnings: No Brand Turnaround In Sight Yet
Seeking Alphaยท 2025-08-11 12:35
Group 1 - Under Armour, Inc. reported fiscal Q1 results for the April-June period on August 8, showing a moderate decline in sales [1] - The company provided weak guidance for Q2, indicating potential challenges ahead [1] Group 2 - The company operates in the athletic apparel and footwear industry, which is facing competitive pressures [1]
Lululemon Stretched by Tariffs, Macro
The Motley Foolยท 2025-06-06 17:34
Core Insights - Lululemon reported a revenue growth of 7.3% and earnings per share of $2.60, exceeding Wall Street expectations [2][4] - The company faces challenges in the Americas market, with a noted decline in comparable sales and a cautious outlook for future quarters [3][4] Financial Performance - Revenue for Q1 2025 was $2.4 billion, up from $2.2 billion in Q1 2024, reflecting a 7.3% increase [1] - Earnings per share increased from $2.54 to $2.60, a 2% rise [1] - Comparable sales in the Americas decreased by 2%, while international comparable sales grew by 6% [3] Market Reaction - Following the earnings report and guidance cut, Lululemon shares fell 20% in after-hours trading, compounding an 11% decline for the year [5] Future Outlook - The company has lowered its full-year earnings guidance to a range of $14.58 to $14.78 per share, down from previous estimates [4] - CEO Calvin McDonald indicated that the company will leverage its financial position to navigate the challenging macroenvironment [6] - CFO Meghan Frank mentioned plans for strategic price increases and evaluating sourcing options to mitigate tariff impacts [7]
3 Monster Stocks to Hold for the Next 20 Years
The Motley Foolยท 2025-05-28 22:50
Group 1: Market Overview - The market is uncertain about the impact of new tariffs, despite a 90-day pause agreed upon by the U.S. and China, with current tariffs on Chinese products at 30% [1] - Tariffs have been raised in various countries globally, contributing to market volatility [1] Group 2: Investment Philosophy - Investors should focus on long-term potential rather than short-term market fluctuations, as all top stocks experience price declines at some point [2] - Notable growth stocks recommended for long-term investment include Shopify, On, and Dutch Bros, which are expected to yield significant gains over at least 20 years [2] Group 3: Shopify - Shopify processed $75 billion in gross merchandise volume (GMV) in Q1 2025, marking a 23% year-over-year increase [4] - E-commerce sales in the U.S. grew 6.1% year-over-year in Q1 2025, presenting a multibillion-dollar opportunity as e-commerce sales accounted for only 16.2% of total retail sales [5] - Shopify holds a 30% market share in the U.S. e-commerce software sector, with significant growth potential internationally, where it currently ranks fourth [6] - Despite a 5% decline in stock price this year, Shopify's stock is up 78% over the past year, supported by strong long-term growth drivers [7] Group 4: On - On is an emerging activewear brand with low global brand awareness but is experiencing rapid growth and customer loyalty [8] - The company aims to position itself as a premium activewear brand, with sales increasing 43% year-over-year in Q1 2025 and gross margin widening from 59.7% to 59.9% [10] - On's stock has risen 46% over the past year, indicating strong potential for future growth as it expands into new regions [11] Group 5: Dutch Bros - Dutch Bros is a rapidly expanding coffee shop chain that recently surpassed 1,000 stores, with a goal of reaching 2,029 stores by 2029 [12] - The company reported a 29% year-over-year sales increase in Q1 2025, driven by new store openings and a 4.7% increase in same-store sales, with net income rising from $16.2 million to $22.5 million [13] - Dutch Bros stock has doubled in the past year, with significant growth potential projected for the next two decades [14]
Lululemon (LULU) Reports Next Week: Wall Street Expects Earnings Growth
ZACKSยท 2025-03-20 15:00
Core Viewpoint - Lululemon is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended January 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on March 27, 2025, with a consensus EPS estimate of $5.85, reflecting a +10.6% change year-over-year. Revenues are projected to be $3.58 billion, an increase of 11.6% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.29% over the last 30 days, indicating a reassessment by analysts [4]. However, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Lululemon currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - Lululemon has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +6.69% surprise in the most recent quarter [12][13]. Conclusion - While Lululemon is positioned as a compelling earnings-beat candidate, it is essential to consider other factors that may influence stock performance beyond just the earnings report [14][16].