When Prem Watsa makes a move, markets tend to pay attention — not because it's flashy, but because it's usually patient, deliberate and deeply conviction-driven. • Track UA stock here.That's why his latest bet on Under Armour Inc (NYSE:UA) is raising eyebrows across Wall Street. Through Fairfax Financial Holdings, Watsa — often dubbed the "Warren Buffett of Canada" — boosted his Under Armour stake by more than 560%, turning it into nearly 10% of Fairfax's portfolio. That's not portfolio tinkering. It's a st ...

Hong Kong-based apparel manufacturer Lever Style Corporation is once again expanding its operation with the acquisition of Australia- and California-based Active Apparel Group (AAG). This will be Lever Style’s seventh acquisition since its initial public offering in 2019. Lever Style manufactures apparel across a number of categories, including activewear and performance apparel. In that category, the company works with brands such as Arc’teryx, Columbia Sportswear, Helly Hansen, Spanx, Skims, and J.Linde ...

Core Insights - Lululemon Athletica has been a strong and profitable player in retail for over a decade, known for its premium brand and enviable margins [1] - Recent challenges include slowing growth, margin pressure, and a significant stock rerating that has affected investor confidence [1][2] Business Model - Lululemon's success is attributed to its disciplined business model, selling performance apparel at premium prices while controlling distribution through company-owned stores and a robust online presence [3] - The company has expanded its product offerings beyond yoga to include men's clothing, running, training, and everyday athleisure, transforming it into a global lifestyle brand [4] Current Challenges - U.S. sales have shown signs of cooling, with the Americas region experiencing a 4% decrease in comparable sales in the latest quarter, indicating cautious consumer behavior [7] - Margin pressure is increasing due to new U.S. tariff rules and higher import costs, which are compressing profitability and reducing earnings leverage [8]

Core Viewpoint - Lululemon is experiencing significant challenges, with its stock down nearly 70% from all-time highs, attributed to increased competition and changing consumer trends in the U.S. [1][2] Group 1: Financial Performance - Revenue growth in the Americas has slowed, with a mere 1% increase last quarter and a 3% decline in comparable-store sales on a constant-dollar basis, marking one of the worst periods for the brand in its home market [4] - Gross profit margin decreased to 58.5% from 59.6% year over year, and operating income fell by 3%, resulting in a margin of just over 20% [12] - Lululemon's market cap stands at $19 billion, trading at less than 8 times its trailing operating income, indicating a historically cheap valuation [14] Group 2: Competitive Landscape - Lululemon faces competition from emerging brands like Alo Yoga, Vuori, and Gymshark, while established competitors such as Nike and Adidas show mixed performance; Nike's revenue declined by 11%, Adidas grew by 8%, and Athleta's revenue fell by 9% year over year [5][6] - Despite the challenges, Lululemon is reportedly gaining market share in the performance apparel category in the U.S., making its 1% growth rate more acceptable to investors [6] Group 3: International Growth - Internationally, Lululemon is performing well, with China revenue growing by 24% year over year and revenue outside of China and North America increasing by 15% [9] - Revenue from outside North America now constitutes 30% of Lululemon's overall revenue, with expectations for this percentage to rise as the company expands its presence in new markets [9][10] Group 4: Future Outlook - The company anticipates $240 million in additional gross profit headwinds this year due to tariffs, which may impact future margins and operating income [13] - Despite potential margin compression, Lululemon's stock is viewed as extraordinarily cheap, especially if international revenue growth continues [14][15]

Financial Performance - Total revenue reached $2.5 billion, a 7% increase[2] - Diluted EPS was $3.10, a 2% decrease[2] - Total comparable sales increased by 1%[2] Segment Performance - Women's apparel revenue increased by 5%[7] - Men's apparel revenue increased by 6%[7] - Accessories and other revenue increased by 15%[7] - Store revenue increased by 3%[8] - Digital revenue increased by 9%[8] Market Performance - Americas revenue increased by 1%[9] - International revenue increased by 22%[9] Company Strategy - The company ended Q2 with 784 company-operated stores globally[9]