- Lululemon is losing market share to 'buzzier' brands like Alo and Vuori, which are cutting into its sales and pressuring the stock.
- The company's comparable North American sales dropped 12% last quarter and its operating margin shrank from 21% to 12%, with leggings sales down about one-fifth year-over-year as consumers shift to looser trousers.
- New CEO Heidi O'Neill is tasked with addressing excess store costs to mitigate the challenges.
- Michael Burry sold his top holding Lululemon (LULU) at an 8.5-year low, swapping into Deckers Outdoors (DECK) for a tax benefit, but plans to buy back in a month after IRS wash-trade restrictions expire.
- Wall Street analysts are pessimistic on Lululemon: out of 37 ratings tracked by FactSet, 27 are hold and 6 are underweight or sell; the stock trades at just 11 times projected next-12-month earnings.
- Despite the gloom, one Seeking Alpha author rates LULU a Buy, viewing it as undervalued at $94 with a $137 target upon margin recovery to 16–18%, implying 15% annualized upside.
引述
“buzzier" brands like Alo and Vuori are reportedly cutting into Lululemon's market share”
“Michael Burry is selling Lululemon but plans to buy back it back.”
“Burry said he's swapped his Lululemon (LULU) shares for Deckers Outdoors (DECK) to claim a tax benefit”
“structural reset”
“leggings sales down about one-fifth from a year ago as consumers shift to looser trousers from brands like Alo or Vuori”
“operating margin "shrank from 21% to 12%”