ZU

zulily inc.

Consumer


Presented:10/29/2014
Price:$35.46
Cap:$4.43B
Current Price:$17.40
Cap:$1.18B

Presented

Date10/29/2014
Price$35.46
Market Cap$4.43B
Ent Value$4.12B
P/E Ratio131.82x
Book Value$2.20
Div YieldN/A
Shares O/S124.89M
Ave Daily Vol1,200,000
Short Int10.78%

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.

Presented by: Carl Kawaja, Portfolio Manager, Capital World Investors at The Excellence in Investing: San Francisco conference

Publicly traded companies mentioned herein: Amazon.com (AMZN), Costco Wholesale Corporation (COST), Ross Stores Inc. (ROST), Zulily Inc (ZU)

Highlights

Mr. Kawaja is long shares of Zulily (ZU), and believes the internet retailer’s business may be substantially stronger than bears – who might be misunderstanding the company – seem to think. The current level of short interest is high (over 50% of free floating shares), and “most of the people short the stock are men.” Kawaja believes it is important to respect that “most men don’t get what ZU is, and what the appeal of the website is.”

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