UAA - Lululemon: Q1 Shows Investor Fears May Have Been Overdone

2024-06-10 12:47:47 ET

Summary

• LULU's first-quarter performance exceeded expectations, with revenue and EPS beating analyst estimates.
• The company's international markets, particularly China, showed strong growth and helped offset a slowdown in the Americas.
• Despite the departure of the chief product officer, LULU's ability to innovate remains intact, with new products set to launch. Valuation is attractive with a potential upside of 65%.

Investment Thesis

The last time I wrote about Lululemon Athletica ( LULU ), back in April 2024, I discussed the company’s fourth-quarter performance and argued why the decline in the company’s stock could offer a great buying opportunity for long-term investors. ...

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