LULU

Lululemon Athletica Inc

Consumer


Presented:06/12/2015
Price:$66.48
Cap:N/A
Current Price:$287.48
Cap:$35.30B

Presented

Date06/12/2015
Price$66.48
Market CapN/A
Ent Value$8.75B
P/E Ratio35.55x
Book Value$8.07
Div Yield0%
Shares O/S141.81M
Ave Daily Vol2,309,360
Short Int10.75%

Current

Price$287.48
Market Cap$35.30B
lululemon athletica, inc. designs and retails athletic apparels primarily in North America and Australia. It offers a comprehensive line of apparel and accessories, including fitness pants, shorts, tops and jackets designed for athletic pursuits such as yoga, running and general fitness. The company operates through corporate owned stores and direct to consumer segments. Its yoga-inspired apparel is marketed under the Lululemon Athletica brand name. lululemon athletica was founded by Dennis J. Wilson in 1998 and is headquartered in Vancouver, Canada.

Publicly traded companies mentioned herein: Lululemon Athletica (LULU), Under Armour (UA), Nike (NKE), Dicks Sporting Goods (DKS) and Macy’s (M)

Highlights

The presenter is short shares of Lululemon on the straightforward thesis that rapidly escalating competition in the so-called “athleisure” space will materially impact the company’s prospects in the coming years. The speed at which competitors looking to capitalize on the category have ramped up has been impressive, according to the presenter, with multiple retailers having made meaningful progress over the last couple of years. Notably, Under Armour (UA) is now doing around $1 billion in sales of women’s athleisure, with the company in his estimation poised to accelerate rapidly from here. 

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Idea Discussion

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