Added to YB: 2026-01-05
Pitch date: 2025-12-27
LULU [neutral]
lululemon athletica inc.
+1.35%
current return
Author Info
No bio for this author
Company Info
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally.
Market Cap
$24.4B
Pitch Price
$208.00
Price Target
231.00 (+10%)
Dividend
N/A
EV/EBITDA
7.08
P/E
14.35
EV/Sales
2.27
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
Lululemon – Cheap for a Reason
LULU (sell): Q3 beat expectations but underlying weakness persists - Americas rev down 2%, comp sales fell 5% vs Q2's -3%. Product innovation failing, visit frequency declining, losing to competitors like Aritzia (+32% rev). CEO McDonald leaving Jan 2026, Elliott activist took $1B+ stake pushing changes. Trades 16x earnings vs historic 20s+ multiples. Target $231 (4% CAGR). Sell.
Read full article (15 min)