View Full Version : Lululemon

16-09-2020, 08:09 PM
Has anyone looked into Lululemon?

They have weathered the covid situation better than most of their competitors. Last I heard they were down 17% in revenue. Compared to Nike and Adidas who are around 40% down.

Massive increase in online sales - Up over 150%

Acquisition a few months ago of mirror a start up company that fits perfectly in with their brand. Subscription based and set to be profitable in 2021. Picked up cheaply.

Increased profit margins year on year.

Recently a dip along with the tech sell off in the last few days.

I need to look more into them, have not done a DCF on them as of yet. Still believe there is plenty of growth on the horizon but with a PE of 76 I'm not so sure if it's a buy yet. Still need to do more research.

I love the brand, my partner has purchased plenty over the years. Fantastic customer service. Returns without an issue and offers of free gift cards worth more than what she paid sometimes for any inconvenience.

Any thoughts?

17-09-2020, 03:00 PM
with a PE of 76 I'm not so sure

Any thoughts?

I heard it was just a look through company . /s

They are benefitting from 'at home fitness ' as well I guess even though one possibly cares slightly less about ones appearance when at home exercising in front of the screen or riding your Peleton bike.
Unless of course if you are zooming the sessions with your virtual gym class all looking at your brand labels.

17-09-2020, 04:22 PM
There seems to be a change already with people working at home.. I believe the same will happen to working out at home.

I agree that one would care less about their appearance. I only have my partners opinion to go on and when I've heard her and her friends talk to them. the thing I got from them chatting is that they are hands down the most comfortable active wear you can own and feel like your naked while wearing those tights. So if it's not for looks and you just want to be comfortable. These would also be your first choice.

There is a massive trend on social media with people feeling the need to post a pic or video of yourself working out. Unless there is a temporary picture/video eg FB story, instagram story, of you at the gym or exercising then it never happened.