Added to YB: 2026-05-21
Pitch date: 2026-05-19
LULU [neutral]
lululemon athletica inc.
+5.62%
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
$13.8B
Pitch Price
$118.53
Price Target
N/A
Dividend
N/A
EV/EBITDA
4.15
P/E
9.07
EV/Sales
1.24
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
lululemon: A quality compounder on sale?
LULU (pass): Pass despite 9x P/E (vs historical 20x). Americas rev -1% YoY w/ 33% OPM (down from 38%). China +29% YoY but 40% OPM attracting fierce competition (Vuori, Alo, Maia Active). Limited patents; suppliers own fabric IP. Demand weak: stabilization driven by heavier discounts & ads, not organic recovery. Gift card cash -3%. Governance unstable: proxy battle w/ founder, unproven new CEO, Mirror USD 443M writedown. Turnaround unlikely.
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