LULU - Lululemon: A Wonderful Business At A Fair Price

2024-06-21 17:45:30 ET

Summary

• Lululemon is a high-quality business that sustains large pricing power to drive their top-line growth and revenue.
• Lulu's brand allows them to build a loyal customer base and fend off competitive threats.
• The business has showcased various growth levers to drive explosive growth over the next few years.
• Lulu's recent fall presents a great buying opportunity that does not come around often.

Investment Thesis:

Lululemon Athletica Inc. ( LULU ) is a designer, distributor, and retailer of athletic apparel across the globe, with their most well-known product being the classic Lululemon yoga pants . Lululemon has long been renowned as a growth stock trading at high multiples, yet the price has fallen close to 40% YTD as a result of stagnant growth in North America which has raised concerns about Lululemon's growth prospects and led to multiple contraction....

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