Added to YB: 2026-09-15
Pitch date: 2026-09-12
LULU [neutral]
lululemon athletica inc.
+1.03%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. Sign up for the newsletter.
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, Hong Kong, Taiwan, Macau, Greece, and internationally.
Market Cap
$11.0B
Pitch Price
$99.28
Price Target
305.00 (+208%)
Dividend
N/A
EV/EBITDA
3.87
P/E
8.10
EV/Sales
1.06
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
Lululemon: The 15-Minute Thesis
LULU (hold): Lululemon remains a hold around $100, or roughly 10x depressed FY2026 earnings: the debt-free balance sheet provides time for a turnaround, but Q2 revenue fell 4%, Americas comps dropped 12%, and traffic, product execution and margins continue to deteriorate. The 55%-probability base case reaches $150 in three years and $170 in five, but the key unresolved question is whether the preference-based moat is cyclically wounded or structurally weaker.
Read full article (11 min)