BUY LULU STOCK? I LIKE IT! LULULEMON ON SALE?

[@unrivaled]

LULU stock has lost nearly half its value in the last few months. In this video I review their latest results, whether they're losing market share and current valuation. Overall it smells really good and I think it has the potential to outperform! For more compelling ideas consider www.unrivaledinvesting.com

[@Jordan-gh7zy]

I was a previous under Armour/Nike athletic purchaser, but my girlfriend bought me some Lululemon shorts and shirt and I’ve just been buying them since.

[@EarthwithTom]

Ive been watching your videos for years and I feel this is the first time ive seen you positive on a stock and its valuation 😂

[@Frogge.777]

Fantastic. I have no reason to believe that Lululemon will do badly. However, I can't justify buying it when I see their products and witness an undifferentiated piece of elastic polyester with a logo on it. Perhaps that is the way of fashion, but I prefer stocks/businesses that solve customer problems rather than stocks that are entirely discretionary.

[@unrivaled]

I'm not sure. Their brand makes it easier for consumers to know that they'll get a product that they trust from a modesty perspective (i.e. not too sheer, won't show off too much), will last, and is comfortable. So the brand makes it easier for them to search / find what they're looking for.

[@henriknygaardjensen8438]

Awesome video. Purchased LULU right before the major sell off this week. Went to LULU store in Ginza Six, Tokyo last week. It was the only store that I observed that had a constant flow of customers / line outside store, waiting to get in.

[@PopeyeSailor-wz7ew]

Lines "out" the door are more relevant. Customers walking out with bags filled with merchandise? 🤔🤷

[@blakeaaron5698]

Their market share in the US has gone way down (think Alo, Vuori), but in Asia they are doing very well - LULU needs to step up their game in the US w/ more appealing lines - ask customers what they want to see.

[@babyprince84uk]

And what happened next?

[@herokorai8346]

I like how you assessed LULU. I thought you only do videos of stocks that you do not want to own (I agree with most of your videos). I understand that you have an exclusive community but this is much appreciated!

[@weihuang-u9q]

What would be the best 5 etfs for a foreign beginner

[@mingxiayang-k4k]

That would depend on the country you in, different brokers for different countries, for me In no order: 1) VOO 2) QQQM 3) SCHG/VUG 4) VTI 5) SCHD/DGRO. Personally I put down 1.3m$ on few ETFs, still diversifying. It was this time last year I made my huge break through with a liquid 200k. Handed it to a Pro here in FL, I get impressive weekly pay out which I put back on long term ETF's. Good buying opportunity though IWM will probably crush it this quarter

[@weihuang-u9q]

Thank you, I already added VOO and QQQM, can you share this Pro with me

[@mingxiayang-k4k]

Yeah, Diana Leayani Lara use her name to look her up

[@sergejhafner6186]

haha just bought it 10 minutes before the video 😂

[@bejanghavami5585]

I used to work at one of the busiest Lululemon’s, the lines at times were out the door. The major issue lulu has is 100% inventory. Their 5 inch men’s shorts would sell out within a week and we didn’t get restock until two weeks later, same with popular Womens items

[@unrivaled]

Really great context. Thank you for sharing!

[@andrelin0913]

about the same as CEO said, he claimed popular items and colors are too often out of stock, this seems to be fixable to me

[@flow2tech]

​@@unrivaledThat's some Peter Lynch type Intel u just got...😂

[@bejanghavami5585]

@@andrelin0913 it should be fixable but I worked there 3 years ago, this problem hasn’t been fixed in 5 years, you’d think they would figure it out by now

[@bejanghavami5585]

@@flow2tech I could give more input but it’d be too long and too much to say

[@dc1219]

My apparel stocks nike and lulu. Buying lulu heavy as its at a better valuation than nike. Will put In a 80% position and if recession hits I'm happy to go 30% overweight so additional 50%. Long term winner imo.

[@bjorn6084]

Why not 100% Lulu for apparel holdings of they’re better?

[@dc1219]

Consumer is fickle, it's always good to have some diversification within a sector, lulu definitely has more upside, but I'd never bet against nike long term. If nike drops to mid 60s I'll be adding.

[@blakeaaron5698]

Do you work with options? I'm looking at ITM calls on LULU for 1/17/25.

[@bhuntington4]

Great video. I just became a shareholder about a month ago and a customer. I will keep buying as the price dips.

[@xaviernogueira]

My ex gf worked at a Equinox store where they sold Lulu gear and it was popular, just asked her now and she says its still the top dog.

[@marveyblamonto]

Takeaway - buy during a recession. Fair chance of one in the next year or two seeing as we’re having a yield inversion.

[@blakeaaron5698]

Speaking of SBUX... what are your thoughts w/ the stock being in the $72-75/share range (a huge support level)?

[@neutralname404]

I was about to buy, but I saw the institution ownership is 92% according to interactive brokers. Do you know when this number dates? If it's the latest then it's like going to a very crowded theater where there is still smoke

[@RafeCruise]

I was recently introduced to their products by my wife. Purchased some t shirts and shorts and I like them. I ordered some trail shoes. Should be here in the next few days. I may buy some lulu in the near future. Don’t have a position yet.

[@andrelin0913]

Okay one thing the analyst claiming is Lulu’s competitors, especially Alo and Vuori are catching up, I was like😂 are u serious? I check reviews of Alo online and 90% of them say Alo’s product totally not worth the price tag which is even higher than Lulu, and Vuori is primarily men’s apparel and it is even more expensive 😂 I feel the analysts just come up the narrative based on the market sentiment, if Lulu is at all time high, they won’t be talking about it at all. I have Lulu’s short and they are great quality, a bit pricy for my income level but I always check their sales section to find affordable pairs.

[@Sam__2000]

Good video, I agree the wildcard is secular downtrends especially regarding consumer pocketbooks. A stock to keep on eye on.

[@NathanXSavage]

I've been buying Nike of Lulu personally, as it's proven over the past few decades that it is recession proof. it's a moat, leader in it's field, the brand is not going anywhere. Yes it has 'competition' and other companies 'eating market share' but it always has. lulu could get wiped out in a recession and disapper like many sports brands do. Or it could survive (which with the current balance sheet I do think is more likely) however would mean way more downside. Lulu does look attractive though and I may start a small position if it continues to drop.

[@PopeyeSailor-wz7ew]

Hard to get wiped out with no debt. LULU is likely here to stay. She with U on NKE. NKE is here to stay. I like them both and want them to moderate after the COVID bounce.

[@NathanXSavage]

@@PopeyeSailor-wz7ewYes I do think it'll be a good idea to hold them both honestly. LuLu is looking like a buy now. Will most likely start a small position. So will see what I decide.

[@davidmessinger3271]

Watched your other video from 4 months ago literally yesterday and started a position in AH yesterday.

[@babyprince84uk]

I cannot find any stock ticker with AH. What is the company name please?

[@TheEcaporaso]

Another great video! Thanks Daniel!

[@MrFrescocotone]

LULU is the absokute leader in the athleisure market. At the current orice, and a potential overseas expansion ahead ofbthem, it is a compelling investment

[@samsonchan127]

Numbers wise - I agree with you. Macro level wise for its forward guidance - not that optimistic. There's always a market for activewear but there are simply way more choices now as well with similar quality and better design. I am not optimistic that LULU can maintain its pricing power and continue to grow - it's too expensive compared to its competitors (including much smaller brands). I feel that LULU lost its moat and I also don't think they're able to expand any further in workwear either. Reimagining its value proposition and target audience is probably necessary to reaccelerate its growth.

[@LDP..]

it is insane how many times i am about to buy a stock , loo k up on YT if you made a video on it , and see that you just posted the day prior or like in this case literaly minutes earlier. Great Video ! Honestly, i am backing out because looking at their products it just is too expensive for me. You also have a lot of competition here in western Europe from Decathlon , ... and China, with a lot cheaper clothing. Maybe i pass by their shop and reconsider

[@unrivaled]

Thanks for the feedback! Glad this channel is helpful for you.

[@nellyfrittata8319]

Bought a teaser position recently

[@TechPeeves]

thank you for covering this. I saw this stock 6 months ago and was scratching my head... why is this stock doing so poorly? I believe it'll jump back before the end of the year, especially with all the rotation. Do you think rotation from tech and semis is a real thing? keep it up!

[@vince9072]

Buying more. Looking at net cash, strong free cash flow.

[@RRENH]

I liked this channel until you referenced the Burrito game. Now I love this channel.

[@slowiedovie]

How is it unrivalled? There are too many new entrants in this sector

[@robertloveable]

Hi Daniel, sorry to write you here, but I couldn’t find another way to reach you. I’m a premium subscriber to unrivaled investing and I just received your last letter/video. In portfolio overview you write “Attached is a weekly update of my portfolio with all my positions by percentage”, but I couldn’t find an attachment or chapter with the percentages. Help!

[@unrivaled]

At the top of the letter is a download button for the portfolio. I also refresh this webpage for subscribers if you don't want to download: www.unrivaledinvesting.com/products/unrivaled-investing-membership/categories/2151852263/posts/2164434031 Also just an FYI, in each letter I provide my email address and feel free to respond to my emails. Best, Daniel

[@zozomickey8389]

I was recently in Paris and Lulu and Nike didn’t have any customers in the stores. I’m going to wait a bit and look again in October

[@marveyblamonto]

Probably better to look at revenue figures than judging a company on a particular store at a particular time of day.

[@danielfchen8895]

Nike and Lulu are somewhat the same PE atm. So you’re telling me you rather have lulu over Nike? Lol

[@babyprince84uk]

LULU growth looks stronger to me. NIKE moat looks stronger to me.

[@wucool33]

Invested $14K for now... Bought 50 shares at $280... Will average down if it dips further

[@darunes_]

I believe Costco are trying to eat LULU's margin for lunch seeing as they sell very comparable athletic wear (copy my homework style) a lot cheaper, which in this socioeconomic environment of more frugal consumer spending, paired with potential LULU/COST customer overlap - might be something to add to the thesis. I am from Norway though, so I've got very little experience with either brand besides being a COST shareholder.

[@jacksonmatysik8007]

I think that's where our investor's brain fools us. Getting the same quality for cheaper but in reality most people want to be seen in the brand (social clout). Which inherently needs more premium pricing.

[@BrianC4812]

@@jacksonmatysik8007I agree. To add to that, my teenage children will not wear anything that they know came from Costco just because she doesn’t “believe “ it’s the same quality. That’s why Lululemon won’t sell clothes at Dicks, or any other stores.

[@timclark2925]

if there is a recession it will just get cheaper and become even a better buy.....just don't dump all your money in at once

[@joseplacencia54]

I recently bought some LULU, I'm penciling out a $500-$600 share price by 2029

[@johnsnow3662]

key reason the stock is down is the ~37% drop in YoY revenue growth + revenue growth is predicted to fall by another ~25% in 2025.

[@babyprince84uk]

Who is predicting this May I ask?

[@robinwagstaff7807]

The company sourced its CEO from the outside big red flag as they don't have a succession or clear management chain, Founder and former CEO is a nut job, who created poor relations within the C Suite...

[@unrivaled]

Very fair take!

[@PascalMeienberg]

helpful

[@gergelyovics]

You mentioned 4-5 read flags and still thinking about why? Have you already divided before you analyzed the company? I believe it's only good for trading.

[@babyprince84uk]

Well, the market cap of LULU is $30 Billion. Nike Market cap is $111 Billion. The question is, does LULU have enough total addressable market to be a 10 bagger?

[@kevinpob]

I would love to hear your thoughts on a competitor of theirs. ON holdings (onon)

[@davidscott2298]

Lululemon benefitting from Internet search overlap from Scottish singing legend lulu too though

[@dontplayformenero]

What a legend of a comment. Only Lulu herself will be googling Lulu 😆

[@davidscott2298]

​@@dontplayformeneronot priced in!

[@andreasl33]

It's a fashion stock. I would not hava a high confidence that the FCF stream extends more than, say, 10 years into the future.

[@Allen-L-Canada]

it's more functional than fashion

[@jenspettereikeland3700]

They got a bunch of downgrades on the same day the other day from analytics. LULU has probably pre announced a bad coming quarter to these analysts beforehand earnings in September this is quite typical to see, So I would be careful before earnings.

[@wheatandtares9764]

What exactly is the moat of the business? Quality and brand? And where will this stock be if there is a recession coming up? I mean lululemon apparel is expensive, so the consumer will surely cut back on some expensive leggings no matter how good they are if we enter a hard landing?

[@Allen-L-Canada]

Branding, Economic Scale, Vertial Retailing.

[@JohnBowl14690]

I'm going to go off pure instinct and say pass on LULU. I think LULU is fad fashion. That said, maybe others love LULU attire and will never stop buying their clothes. For me, I don't buy stocks that don't appeal to me.

[@babyprince84uk]

What stocks appeal to you May I ask?

[@세상느긋해]

I love this video ❤