ZU

zulily inc.

TMT, Consumer


Presented:04/24/2014
Price:$46.17
Cap:$5.73B
Current Price:$17.40
Cap:$1.18B

Presented

Date04/24/2014
Price$46.17
Market Cap$5.73B
Ent Value$5.42B
P/E Ratio124.45x
Book Value$2.20
Div YieldN/A
Shares O/S124.12M
Ave Daily Vol1,180,000
Short Int3.41%

Current

Price$17.40
Market Cap$1.18B
zulily, Inc. operates as an online retailer. The company operates through two segments, North America and the United Kingdom. It provides various merchandise products to moms purchasing for their children, themselves, and their homes, including children’s and women’s apparel comprising accessories and shoes; children’s merchandise comprising infant gear, sports equipment, toys, and books; and other merchandise, such as kitchen accessories, home décor, entertainment, electronics, and pet accessories. The company sells its products through a flash sales model. zulily, Inc. was founded in 2009 and is headquartered in Seattle, Washington.

Highlights

Simply put, the presenter believes zulily’s (ZU) margins are too high and the stock is trading at an unjustifiable multiple to earnings. The retailer’s focus on mothers, and Howard Shultz’s involvement is interesting, but with shares at 90x 2015 EPS estimates and 4-6% EBITDA margins, he feels that the risk/ reward is favorable for short sellers.

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Idea Discussion

Commentor 1 - 2 weeks ago

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