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- Manlobbi
Halls of Shrewd'm / US Policy
No. of Recommendations: 4
Down >20% on weak guidance in the face of tariff uncertainties. TACO trade?
No. of Recommendations: 2
I'm curious how vulnerable they are to a recession involving their core customer base. Their stuff is quite expensive and if they customers are feeling pinched, they may forgo some expensive ath-leisure clothing for a while. Plus, I have read that quality has declined since they first got to be trendy.
No. of Recommendations: 2
In my circle (wife, kids, etc...) their brand is very strong - no mention of quality issues. Yes their products are expensive :)
tecmo
...
No. of Recommendations: 1
LULU has reached a level around 246 that looks good to me. CFRA has it rated 5* since the price drop, and M* currently pegs fair value conservatively at 305. Balance sheet is rock solid. I've opened a modest position.
No. of Recommendations: 3
I want a lower entry price, below 15 * 2025 EPS. So I sold March 2026 $240 puts for $28. Should give me an entry price of $212 if put or an yield of almost 18% on the cash backing the puts. Will be satisfied with either outcome.
No. of Recommendations: 4
I am on the fence after looking at this a bit.
The EPS trend has been very good the past 5 years
Sales EPS (TTM) Stock Price* PE
2021 : $ 4.40B $ 4.70 $322 68
2022 : $ 6.26B $ 7.79 $297 38
2023 : $ 8.11B $10.07 $330 32
2024 : $ 9.62B $12.77 $311 24
2025 : $10.59B $14.64 $315 21
2026?: $11.25B? $14.80? $225? 15?
* Jun 1st each year
Yes during this time the stock has been generally flat - showing how much growth was priced into the stock back in 2021. My general hesitation in investing in retailers is also a bias I have.
Forecasts are for $14.80 per share in EPS this year, but that is based on a fairly pessimistic view on tariff policy (TACO opportunity?). On the negative side, have they tapped out their growth potential on the top line? Their products are for a very specific market - that customer base is loyal but can they grow it?
I would suggest an entry point below $225 is probably on the safer side for a trade - with the expectations that the tariff policy challenges are over stated and the stock would probably pop back over $350 - but that is a speculative position; so it would be risky.
tecmo
...
No. of Recommendations: 2
<<On the negative side, have they tapped out their growth potential on the top line? Their products are for a very specific market - that customer base is loyal but can they grow it?>>
China is the second largest market in the world for athleisure wear, and LULU has only begun to penetrate there, with much success to date. The company keeps innovating with new materials and products. They're also planning on entering the athletic shoe market. And they have plenty of room to grow in clothing for men.
No. of Recommendations: 3
Stock price continues to crater, down to $195, back where it was in 2019.
If you think they can earn $14 / share this year then it looks like good value;
For what its worth analysts have the range of $12.92 to $16.26, with $14.72 as the average. This coming quarter is estimated at $2.90
I am contemplating starting a position here...
tecmo
...
No. of Recommendations: 0
No. of Recommendations: 2
down to $195, back where it was in 2019.
If you think they can earn $14 / share this year then it looks like good value;
For what its worth analysts have the range of $12.92 to $16.26, with $14.72 as the average. This coming quarter is estimated at $2.90
I am contemplating starting a position here...
I am sorely tempted, too, but I think the whole question is, is Lululemon going out of fashion, with sales and earnings falling off in the next few quarters, or can the company be expected to continue at something like the current level of sales and perhaps keep growing, as it has in the past? Clearly, the fall-off in price is because a lot of investors think the brand is stale and customers are starting to prefer alternatives like Aritzia, Vuora, or at the cheaper end Athleta, Nike, Alo Yoga, etc.
Fashion is fickle, and I don't have enough of a feel for this to buy LULU at 13x trailing earnings. My gut feeling is that the brand is still intact but what would a 60 y.o. male like me know?
dtb
No. of Recommendations: 2
Fashion is fickle, and I don't have enough of a feel for this to buy LULU at 13x trailing earnings. My gut feeling is that the brand is still intact but what would a 60 y.o. male like me know?
I am of similar vintage :) My wife and two daughters (small sample size) continue to view the brand positively ; in fact a few hundred dollars was just dropped at one of their stores last week (its amazing how much they are able to charge for a pair of shorts!)
tecmo
...
No. of Recommendations: 1
I am of similar vintage :) My wife and two daughters (small sample size) continue to view the brand positively ; in fact a few hundred dollars was just dropped at one of their stores last week (its amazing how much they are able to charge for a pair of shorts!)
I will add my wife and 3 daughters to this sample size. I even bought some yoga pants from Costco for the wife after seeing the lawsuit LULU filed against them . She did not like them and the daughters refused to even entertain the idea.
No. of Recommendations: 1
<<Clearly, the fall-off in price is because a lot of investors think the brand is stale and customers are starting to prefer alternatives like Aritzia, Vuora, or at the cheaper end Athleta, Nike, Alo Yoga, etc.>>
Read the rest of the M* review. It's mostly because of tariff concerns. That's when the stock tanked. M* rates LULU 4*, CFRA rates it 5*. The reasoning looks sound to me.
I'm underwater in my small position but looking to add. Lulu's core demographic is relatively immune to modest price increases, and those tariff-related increases will hit competitors, as well.
No. of Recommendations: 5
I went by the Lulu store in our area to check it out. Have to admit that the clothes are quite nice, but as you know with an eye popping price tag. Liked the men's clothes as well, and the men's slacks look fantastic for travel. I may pop back in when I have more time and actually try some clothes on. Also chatted with one of the employees for a few minutes. She loves working there, having started as part time and 18 months later is in what is essentially a supervisor position. (Granted, she is 19 and has the life experience of a gnat, so big caveat on those rose colored glasses.) Said she is heading to college shortly, and they are working with her schedule so that she can both work and go to school. She got hooked on the brand from her mom, who gives her 4 girls the hand me downs, which they gratefully accept. (Teens gratefully accepting hand me downs from a parent is atypical, FYI.) Stated she gets good benefits, but again, 19, so what does she know. Store was crazy well organized, staff was very attentive. I left thinking they should really market this stuff for those who travel lightly, as it seemed as though you could wash it in the sink and hang to dry.
I asked if they still do the repairs on clothing, which according to a friend used to be a lifetime thing. They do not. They will replace if there is an issue in the first year. Great way to keep tabs on quality of product.
IP,
intrigued
No. of Recommendations: 10
I went back to our LULU store yesterday for a shopping experience. At 6 PM Sunday, an hour or so before close, about 6 shoppers in a very small store. Don't know if it is small compared to others as it's the first I have been in, but rents are insane here.
What a luxurious experience. Greeted right away and catered to, intensely but delicately at the same time. Never pushy and always helpful, able to converse intelligently. The bag they put the purchase into is one I will be pleased to reuse. Free hemming on pants. Happily the two pair of pants I bought were on clearance, making them "only" $80 each. I confess I would have never bought them as running pants, but for our upcoming trip they are perfect. I love the way these pants make me feel.
This was a brief foray, but I will be back to check out their other products. Since we will be in Canada for a few weeks, will keep an eye out for stores there to pop into as well.
Maybe I've lived under a rock, but I had no idea they produced anything but yoga clothes. These are great travel clothes and they seem to be missing the opportunity to trumpet that fact. Also a market that is seemingly untapped is larger sizes. Perhaps it is the function of the small store I was in, but there were no clothes above a size 14, though they are apparently available on-line. These are clothes that need to be tried on for most buyers to reach for their wallet. If they were to go into travel clothes, that small size would eliminate half the US population.
I am not a label buyer of clothes and don't care who the designer is, but I love the way these clothes look and feel, and the shopping experience was the opposite of dreadful, which buying pants for me normally is.
IP
No. of Recommendations: 1
I opened a smallish position earlier this week - depending on the earnings report I might adjust (still have room to add, or possibly even sell if there is a pop).
tecmo
...
No. of Recommendations: 4
Although the numbers look appealing (in hindsight) should LULU be put into the too hard pile because of the fickle taste of fashion, same with Nike?
I own some Nike and am thinking about this atm.
Thinking about companies like Gymshark, own brands / labels and also every man and his dog promoting their own clothing lines. Are the days of tasty margins for Nike a thing of the past? Will NKE and LULU recover?
No. of Recommendations: 2
:(
https://www.cnbc.com/2025/09/04/lululemon-lulu-q2-...They seem to be putting a lot of blame on tariffs, but it seems their products are also an issue
Lululemon
shares plunged in extended trading Thursday after the company gave a much worse than expected full-year outlook.
The company topped second-quarter earnings estimates but slightly missed revenue expectations. But it said it expected tariffs to hit its full-year profits by $240 million.
Lululemon said it expects full fiscal year earnings of $12.77 to $12.97 per share, well below Wall Street estimates of $14.45 per share. It also anticipates full-year revenue of $10.85 billion to $11 billion, compared with Wall Street expectations of $11.18 billion.and
“We have become too predictable within our casual offerings and missed opportunities to create new trends,” he said, identifying those issues as the “root causes” of the company’s product challenges in the U.S.might need to pull the plug on this...
tecmo
...
No. of Recommendations: 10
I've invested in fashion-type stocks over the past 20 years: Lululemon, Coach (now Tapestry), Deckers, Michael Kors (now Capri). Net, I made a lot of money, but I concluded these companies are too fickle. Well, not the companies, but the consumer, and in turn, the stock. So, I've sworn them off. Too hard pile.
No. of Recommendations: 1
Went into a store in Montreal yesterday, and it was packed. Is it the on-line traffic that is down? That said, I think they are missing a huge boat by ignoring the less svelte middle aged traveler. Create another line if necessary, making travel clothes for all sizes with those wonderful fabrics they already developed. Lululemon Voyager, or some such.
I am absolutely loving my "running pants" for travel. Those zip up pockets are fabulous and the pants are not only comfortable, but also look great. Much of their existing line could easily fit as travel gear, but the ads need to be targeted.
IP,
not a buyer yet, but closely following
No. of Recommendations: 1
Down about 18.5% in pre-market.
Since we are in Montreal right now, my news feeds are about the Canadian economy. Looks tough and getting tougher, yet, again, the stores here were packed. That coupled with the tariffs, even should they get reversed, gives me pause. I'll see what the stores in Quebec City shows next week. What I saw here may just have been Labor Day sales, though nothing in the store actually looked to be on sale.
IP
No. of Recommendations: 1
OK, so I see the point of the lawsuit against Costco now that I've been to one in Montreal. Picked up a wonderful skort for pickleball on about 50% off sale for C$10,(including the roughly 15% tax,) vs the too short skorts in Lulu that were 50-ish, IIRC. Probably won't last as long as those at LULU, but being able to buy 5 for the price of 1 could sure extend that life. We come from the land of tax free clothing. Having to add roughly 15% tax to a LULU purchase would make me think twice!
IP
No. of Recommendations: 0
Picked up a wonderful skort for pickleball on about 50% off sale for C$10,(including the roughly 15% tax,) vs the too short skorts in Lulu that were 50-ish, IIRC.
"Our plans for World Pickleball Domination have been unleashed!"
No. of Recommendations: 1
"Our plans for World Pickleball Domination have been unleashed!"
LOL. Where do you play? We may be on our way there next!
I confess I am in full withdrawal right now. Good thing we have so many great places to see and amazing food to eat to distract us from our pain. With all this walking I have no fears of losing my edge on the courts when we get back to it.
Enjoying Quebec City right now and will pick up our paddles when we get to Portland. Also hope to check out another LULU store while I am here, though definitely not buying more skorts!
IP
No. of Recommendations: 5
Thinking about this one I think LULU may have more in common with Under Armour than Nike. Ie that a turnaround will be difficult to engineer and the share price may continue to decline.
I found this video on YouTube quite insightful. As much as I like Lynch and his scuttlebutt approach it's always insightful to get as many opinions as possible for and against.
https://youtu.be/wzzc__Vv0hI?si=D-0WwMbj8jwV8czt
No. of Recommendations: 2
Great video, thanks for sharing.
"Ie that a turnaround will be difficult to engineer and the share price may continue to decline."
I don't disagree that the price is probably going to continue to decline and am in watch mode, but I see a great pathway to rebound. Unfortunately, the company I envision is not the company that exists, so am not pulling the trigger.
LULU has a serious perception problem, which this video confirmed. Telling your buying public they just may not have the body for LULU clothing is insane, but the limited sizes in the stores and anorexic twig models in the ads screams as much. The video talks about the need for less tight fitting clothing, as though yoga pants were all they sold, and indeed until I recently went into a store for stock research, that's exactly what I thought. I was delighted to find beautiful, comfortable running pants that look great anywhere, in a fabulous fabric that you are likely to be able to wash out in your bathroom sink and hang to dry while traveling. (Not yet tested that theory as we rent apartments with laundry units when traveling, but it's on my list to check out.) Their men's department has very nice clothing, even business appropriate, all made with their excellent fabrics. They are missing a huge market by focusing on advertising tight clothing and ignoring the travel wear connection, which larger sized people would flock to. And where is that advertising? While I may have simply tuned out any ads from LULU, I can't recall seeing anything until I became a "member" with my purchase. I am now flooded with email ads of course, all of them touting the skinny models wearing clothing that I have pretty much zero interest in, probably because the too tight clothing even on these sticks don't look at all comfortable. They have invested in the materials, so why not use them on travel wear?
The good news is that the CEO seems to understand they have rested on the yoga pants laurels too long, and that change is needed. Hopefully they didn't wait too long for that and can recover. Perhaps even a new brand launch, specifically for more inclusive clothing would be in order.
I also wonder about waiting too long to pull the trigger. The courts have ruled Trump's tariffs as illegal. Will there be a significant rebound if the Supreme Court backs up the lower courts and tariffs are pulled? I confess I am not rushing to put my cash into this market. We are not in the phase of life where increasing our net worth is the primary goal.
FWIW,
IP
No. of Recommendations: 0
They are missing a huge market by focusing on advertising tight clothing and ignoring the travel wear connection, which larger sized people would flock to. And where is that advertising? While I may have simply tuned out any ads from LULU, I can't recall seeing anything until I became a "member" with my purchase. I am now flooded with email ads of course, all of them touting the skinny models wearing clothing that I have pretty much zero interest in, probably because the too tight clothing even on these sticks don't look at all comfortable. They have invested in the materials, so why not use them on travel wear?
New ad just hit my email with lots of comfortable looking travel or business casual clothes that I knew they had from exploring the store. Perhaps they are starting to walk their talk about a direction change. Hopefully that will eventually also include models that look older than 19 and have an ounce or two of fat on them, though they may be concerned about alienating their existing base. Still don't know if these ads are getting out to the general public, or just "members." Happy to see it either way.
IP
No. of Recommendations: 1
Earnings are due out on Thursday.
Expectations / Forecast
* EPS $2.21 (vs. $2.87 last year)
* Revenue : $2.48B (vs. 2.40B last year)
I recently doubled down; fingers crossed there are more skeletons that need to be exposed.
tecmo
...
No. of Recommendations: 1
No. of Recommendations: 3
A table of recent earnings
Period TTM EPS P/E EPS Revenue
October 2025 $14.72 14.11 $2.59 - 9.8% $2.60B + 8.3%
July 2025 $14.68 13.17 $3.10 - 1.6% $2.53B + 7.2%
April 2025 $14.73 18.83 $2.60 + 2.4% $2.37B + 7.3%
January 2025 $14.67 28.23 $6.14 + 16.3% $3.61B +12.7%
October 2024 $13.86 21.94 $2.87 + 46.4% $2.40B + 8.7%
July 2024 $12.96 19.56 $3.15 + 17.5% $2.37B + 7.3%
April 2024 $12.50 29.18 $2.54 + 11.4% $2.21B +10.4%
January 2024 $12.23 39.09 $5.29 +461.7% $3.21B +15.6%
I think there is still upside left, even at $210 / share. If they can get to $15.00 in EPS with a 20x multiple that would suggest $300 / share is possible.
tecmo
...
No. of Recommendations: 3
https://finance.yahoo.com/news/elliott-said-build-...Elliott Said to Build a $1 Billion-Plus Stake in Lululemon
(Bloomberg) -- Activist investor Elliott Investment Management has built a stake of more than $1 billion in Lululemon Athletica Inc., according to a person familiar with the matter, as the struggling retailer faces a strategic overhaul amid its chief executive officer’s exit.
Stock is up 7%...
tecmo
...
No. of Recommendations: 1
I have a very short list of stocks I constantly watch and try to evaluate along the lines of Manlobbi´s IV10 method.
In this list of just a dozen stocks two stocks stand out as extraordinarily cheap: PYPL and LULU. While PYPL was/is discussed the last post on LULU is from 12.Dec.
Any comments?
(Apart from what a little googling finds: "Younger" competitors, activist founder shaking up board, "look-through" pants, professional commentators complaining the brand looks "old", not "fresh" (I wonder whether consumers think the same or simply continue to love their clothes (and the status they are buying with it))?
No. of Recommendations: 2
have stayed away for a simple reason.
lululemon experienced multi-year success in china that is extremely unusual for a non-luxury brand.
china is the most fickle retail base for the mass consumer, and will likely remain so unless middle class wages in india ever catch up.
No. of Recommendations: 2
Lululemon IS a luxury brand. Their yoga clothes always were and still are not targeting the mass consumer. It´s a status symbol, for people who are/think they are/want to be elite --- and are willing to spend a fortune for that. This goes so far that the founder once got in trouble saying not every woman has the body to wear their pants (meaning the McDonalds/Burger King etc. mass customer).
A Yogini showing Lulu´s symbol on her pants (it´s always a "her") signals "I am loaded and I am elite".
So actually what you say confirms me in Lulu being interesting indeed, as wealth is more and more common in China and India.
No. of Recommendations: 5
It´s a status symbol, for people who are/think they are/want to be elite --- and are willing to spend a fortune for that.
I think this may be a bit of an exaggeration. I have been in a few stores and yes, the prices are not exactly a bargain, but their clothing does not cost a fortune either. Have you looked at their website? Women's leggings are about US$100-$200, mostly closer to $100, with some on sale for half that. Canadian prices are similar.
At 11x earnings, and sales that, at least so far, are holding up, it seems like Mr Market is giving up maybe a tad prematurely. I don't have any insight into what trends might be and whether we really are at the end of the road for this company, but I don't see any signs of it. A brief home consultation reveals that women in my (Canadian) family like the brand, and would be delighted to get something from Lululemon for Christmas, for instance. They still have a reputation for being better quality, chic, a little edgy, and a bit of a luxury, but not a ridiculously extravagant one.
No. of Recommendations: 0
Women's leggings are about US$100-$200, mostly closer to $100, with some on sale for half that.
Mmhmm, maybe my view is too egocentric, too much using myself as yardstick, and therefore not able to assess this, with 2/3 of my clothes bought in Thailand (tip for travellers: Bangkok, either SBK or Chatuchak weekend market; nice shirts/shorts: $5). For a change tomorrow I will buy me some Lululemon - the stock of course, not the clothes.
No. of Recommendations: 3
never read any analyst putting lulu or apple into a luxury grouping.
most agree these are aspirational brands, still relying on unit sales in the multi-millions, not multi-thousands.
No. of Recommendations: 3
(I wonder whether consumers think the same or simply continue to love their clothes (and the status they are buying with it))?
I continue to watch the company as well, but am concerned about the corporate culture and the drive to change it back to it's old ways. That said, I do love the (deeply discounted) clothes I have bought from them, and discovered Eldest is also a BIG fan. Status oriented? Not one bit. Simply love the fabric, the fit, the quality. The fabrics hold up beautifully, unlike their low quality look a likes one can find at Costco, which seem to pill up as you look at them. Eldest hardly sees people as he works from home, and not at all status oriented either. He does not like to shop, and not yet settled into his own home, doesn't buy in volume to keep moving easier, which is why he likes the high quality clothes he buys here that seemingly last forever. He is definitely a quality over quantity guy.
As we travel, I pop into stores to check them out. Am consistently impressed by the quality of the workforce and how happy they all seem to be, how welcoming the stores are. No one standing there, staring at their phone, bored. All seem genuinely happy to be there, happy to help. Went after Christmas shopping with Eldest, and rather than let the store be insanely crowded, they had a line formed outside the store, waiting for their turn to enter as others exited with their purchases. This of course caught everyone's attention as they walked by, with many getting in line to see what the fuss was about. They were well staffed and very helpful, so purchases went surprisingly quickly. IMO their stores are a real asset. I have been to stores in NC, VA, and Montreal.
I had never been into a store before this past summer, and was pleasantly surprised that it wasn't just yoga clothes. As an investor, I am not pleased that I was surprised, and it's one of the things that make me hesitate. I wear my purchases for travel, the pockets absolutely perfect, with their inner pockets and zippers, to keep my cash and credit card/ID safe from pickpockets. Comfortable enough for all day tourism, while looking stylish. Even on steep sale, the prices were jaw droppingly high. Men's line is also great, though I can't get DH to even consider it, due to the price point. Note that the expansion past yoga pants is one of the ways in which the originator of the company thinks they have gone astray, while I think it's what makes the company worthwhile. I think they should go harder in their marketing to the travel crowd, and expand that line to be more inclusive of all sizes. Currently, they sell nothing past a size 16 for women, and according to one store I was in, those would be available only online. They are very youth oriented, and should find a way of expanding to the more affluent senior set with their designs, being careful not to alienate the young. I don't need or want my pickleball skorts that short, no matter what shape my legs are in, so I picked up knock offs of their skorts at Costco, where I was able to pick up 5 for the price of 1 on sale at LULU. I will need the 5 to come close to how long the LULU one would have held up well.
I see ways for them to improve and be more profitable, but do they? As I am not on the board, I am hesitant to buy shares until I can answer that question. I find the founder to have pretty repugnant ideas on marketing and it concerns me that he is looking to get involved again.
FWIW,
IP
No. of Recommendations: 1
Note that the expansion past yoga pants is one of the ways in which the originator of the company thinks they have gone astray, while I think it's what makes the company worthwhile. I think they should go harder in their marketing to the travel crowd, and expand that line to be more inclusive of all sizes. Currently, they sell nothing past a size 16 for women
... should find a way of expanding to the more affluent senior
... Costco, where I was able to pick up 5 for the price of 1 on sale at LULU. I will need the 5 to come close to how long the LULU one would have held up well.
... the founder ... it concerns me that he is looking to get involved again.
A nice example of how much opinions can differ. I knew LULU only from yoga studios/retreats, with the labels "expensive and exclusive" and "sexy clothes for sexy women" attached.
From what I read here my impression is that they lost their founder´s focus, that it´s like Porsche who once had the 911 line only, later expanded by the Boxster/Cayman line (with the Boxster saving them when they were close to ruin). Then all was good and they could have stayed where they were, an expensive, exclusive and sexy niche brand with extremely high margins and all would have been good.
But no, "of course" that was not enough, it had to be "more", they had to dilute the brand with all kinds of additional lines which more and more deviated from what the brand Porsche stood for: Panamera, the "family 911". Cayenne, to hop onto the SUV bandwagon. Macan, the SUV for the poor family who can´t afford the real thing. And tomorrow probably a little city car.
No more focus, no more being unique, no more moat --- like LULU.
No. of Recommendations: 1
No more focus, no more being unique, no more moat --- like LULU.
So much of their development money seems to go to creating new fabrics, so why not use those great fabrics and great quality to extrapolate their offerings to travel. Put it under a different label if worried about losing their OGs. Get more profit from the great fabrics they develop. Their fabric is what makes them unique. Design is easily copied and done all the time.
If sharks stop swimming, they die. Same for companies. Adaptation and squeezing more profits from investment is where it is at.
IP,
who never needed a label on clothes to tell me I was sexy ;-)
No. of Recommendations: 1
I have no interest in investing in LULU myself, but it has
made me think of which clothing companies have delivered
decent returns to investors:
- Nike (the most obvious outlier)
- Ralph Lauren (RL)
- TJX (not a pure apparel play, but resilient in tough times)
- Deckers Outdoor Corporation (DECK)
As opposed to brand companies that have been struggling:
- GAP
- LEVI
- Abercrombie & Fitch Co (ANF)
And for a non-US company, Zara (owned by Inditex) seems to be
very popular where I live in Europe.
-Rubic
No. of Recommendations: 1
So much of their development money seems to go to creating new fabrics, so why not use those great fabrics and great quality to extrapolate their offerings to travel.
This would be a huge mistake IMO. Travel clothing is not a market category that people associate with the brand and it would just dilute it. They have terrific stores and that is what they need to keep leaning into, the lifestyle that their customers are aspiring too.
tecmo
...
No. of Recommendations: 5
Athleta trip report:
I am currently shopping for another trip and popped into an Athleta store for the first time. They seem to be doing what I hoped for LULU, with an extensive line of clothing perfect for traveling. Designed to be inclusive of all wishing to give them money, not sneering at those larger than a 14, and even having clothing that was purposely constructed to create a need to make a woman feel smaller, this middle aged woman did not feel out of place. Frankly LULU makes me feel as though I am trying to buy from a store that caters to hip Juniors, that I am trying to be younger than I am, and should be shopping for a teen rather than myself. I don't see that lack of inclusivity to be good for the bottom line, and is the main reason why I have yet to pull the trigger on LULU.
Same level of extreme service, clothing that seems to be well constructed though with more conventional fabrics than those LULU creates. My mid-length linen skirt with great zippered pockets is perfect for traipsing around Europe this summer, but it will be tough to freshen up with a sink wash, which I can do easily with my LULUs.
LULU has created a strong following for athleisure, so why not have those buying their workout clothes age into a LULU brand for travel that is more demographic friendly for all? They already have the fabrics. IMO they are missing a huge opportunity. Side by side stores if brand dilution is a concern. Call it LULULife to continue the alliteration that Lululemon holds. Make people want to get all their clothes with a LULU brand.
But that's a company that does not exist, and so I continue not to buy.
IP
No. of Recommendations: 3
LULU has created a strong following for athleisure, so why not have those buying their workout clothes age into a LULU brand for travel that is more demographic friendly for all? They already have the fabrics.
I personally don't think expanding the product line is the right answer right now. They need to re-engage with their core market. Expanding markets is for companies that are doing well, not those in a turn around IMO.
tecmo
...
No. of Recommendations: 0
I personally don't think expanding the product line is the right answer right now.
I understand what you are saying, but it is never a good time to alienate your potential customers, and by limiting style and sizes that is exactly what they are doing. They put a lot of money into their fabric development. They could get more for their fabric investment by expanding their product line to a different demographic and broadening their advertising focus. Follow the money rather than sneer at it. Frankly, I don't see how they can do a turn around without a turn around in their exclusivity towards the younger set. There is a need to broaden their appeal and expand their customer base.
IP
No. of Recommendations: 7
I understand what you are saying, but it is never a good time to alienate your potential customers, and by limiting style and sizes that is exactly what they are doing
Don't take this personally, however...
I think the worst thing they could do to the brand is attract a bunch of overweight old people to the stores. Yes you have added those customers, but the base customer will get turned off quickly and the entire aspirational value proposition will collapse.
The brand is meant to be exclusive; both on price and on the image it is selling. This is what made them successful.
tecmo
...
No. of Recommendations: 4
I avoid fashion and this is a major reason why.
The dilemma for LULU is that it can't easily move outside of its market without moving away from what made it successful. But if it stays in its lane (which I think is the better choice), it's already yesterdays news. The trendsetters for the "young and fit" aesthetic already moved over to Alo, and a variety of other microbrands. I take it from this thread that this may not have been the case in China, but it is the North American reality. I live by two of the flagship stores for each chain and I see it upfront daily. Only Alo is prompting the kind of aspirational "look what I bought" behaviour that made LULU successful. This is very likely to get worse over time, not better, for the obvious reasons. And if you're going for something else (travel wear), there's already a flood of options.
Everything has a price but I wouldn't be surprised if LULU closes its doors within 10 years. LULU's selling point was being on (and even creating the) trend. A lot of the trend has moved on. That's a tough business to be in.
No. of Recommendations: 0
Looks like Elliot Investment Management have purchased a 5% stake and are looking to shake things up, although the board went against their preferred new CEO.
Apparently they acquired the majority of the stake in Dec 25 so that would place it between 180 -200$ a share.
No. of Recommendations: 0
Short answer: No — Elliott hasn’t published a detailed public “thesis letter” (like a full activist presentation) for Lululemon.
But we can clearly infer their investment thesis from reporting and actions.
What Elliott has publicly signaled
Through media leaks, proposals, and actions (not a formal PDF/letter), Elliott Investment Management has made its core ideas pretty clear about Lululemon Athletica:
1) Leadership change is the #1 priority
Elliott pushed for a new CEO and even backed a specific candidate (Jane Nielsen) �
The Wall Street Journal +1
More recently, pressure from Elliott and others contributed to an actual CEO transition �
Reuters
👉 This is classic Elliott: start with management/board changes.
2) They see the business as underperforming
Stock down sharply from peak, weak U.S. sales, and brand issues
Problems cited include:
“losing its cool” / brand relevance
inventory and discounting issues
slowing growth �
The Wall Street Journal +1
👉 Translation: Elliott believes the core brand is fixable but mismanaged.
3) Turnaround + operational reset
Preference for a turnaround-style CEO (not just a growth exec) �
New York Post
Focus areas implied:
product/brand revitalization
faster execution (design → market)
tighter operational discipline
4) Governance / board pressure
Elliott is part of broader pressure (alongside founder Chip Wilson) for board-level changes �
Reuters
👉 This suggests they think the problem isn’t just management — it’s oversight too.
What’s missing (important)
Unlike some activist campaigns, Elliott has not publicly released:
A detailed slide deck
Explicit valuation targets
A step-by-step turnaround plan
So investors are piecing together the thesis indirectly.
Clean summary (the “real” thesis)
If you boil it down:
“Strong global brand + broken execution = fix leadership → restore growth → rerate stock.”
That’s a very typical Elliott playbook.
If you want, I can compare this to past Elliott campaigns (e.g., Starbucks, Nike, etc.) to estimate how aggressive they might get here.
No. of Recommendations: 0
Don't take this personally, however...
I think the worst thing they could do to the brand is attract a bunch of overweight old people to the stores.
Not taken personally as I can and do wear some LULU. Really liked their skorts but chose to buy elsewhere given how insanely short they are, even on these relatively short legs. But I also researched it from the POV of maxing out a customer base and extending the profitability of their investment in developing fabrics. The brand targets the teeny bopper demographic, teens to maybe 30 years old, and typically the demographic with a lower spending power. "Old people" have money and can afford $150 jogging pants. The problems the company had with the see through leggings was met with a CEO who said that some people just shouldn't wear LULU, rather than admit to and address the quality problem. The models they use in advertising, which frankly I only found after buying product during my investigating the brand, are size zeros, and unrelatable. I had no idea that this company made anything other than yoga pants. How is that smart?
As I said, if there is a concern of alienating current customer base, then you simply develop a companion store of LULULife, for those over 30 and not wanting their clothes painted on, or wanting these great fabrics for life events beyond preening for the stud they are trying to attract. Way too narrow a customer target and not maximizing their investment in fabric development. Why alienate your customer when you can simply grow with them as they mature?
IP,
not seeing growth potential here, and finding Athleta doing a better job of serving all categories with grace
No. of Recommendations: 0
Everything has a price but I wouldn't be surprised if LULU closes its doors within 10 years. LULU's selling point was being on (and even creating the) trend. A lot of the trend has moved on...
I wouldn't be surprised either, without an ability to adapt to an maturing customer base.
IP
No. of Recommendations: 1
"Old people" have money and can afford $150 jogging pants. The problems the company had with the see through leggings was met with a CEO who said that some people just shouldn't wear LULU, rather than admit to and address the quality problem. The models they use in advertising, which frankly I only found after buying product during my investigating the brand, are size zeros, and unrelatable. I had no idea that this company made anything other than yoga pants. How is that smart?
If I had to guess their bust customers are probably between 30 and 45 years old and female. You might find the models unrelatable, but the brand is aspirational, so that is sort of by design.
As I said, if there is a concern of alienating current customer base, then you simply develop a companion store of LULULife
Setting up an entire new distribution system with a new brand would cost a fortune, and pose a ton of risk. They need to stay in their lane. I am a shareholder and if they ever move in that direction I would be a seller. My investment thesis is that they can get back to EPS of $15 / share and trade at 15x that amount; which doesn't require anything other than getting back in sync with their current customer base (and figuring out their supply chain to deal with tariffs).
tecmo
...
No. of Recommendations: 0
If I had to guess their bust customers are probably between 30 and 45 years old and female.
You are absolutely correct. I am saying this from many years of first-hand experience. In Yoga circles Lulu is a status symbol, always was, still is.
I don't see why it should be necessary to water that down. What's wrong with being a niche/speciality retailer with a narrow and exclusive customer base (those women have money; proof: You see a lot of Lulu especially in Yoga Retreats and Yoga Teacher Trainings --- and both are money making machines, very expensive, addressing a certain group of women) as long as that works? Why not focus solely on continuing that and on dominating upcoming competitors in one's niche instead of becoming a generalist?
No. of Recommendations: 0
i see more risk in 25% sales being the globe's most fickle\trend customer, china.
see posterchild nike.
fwiw, i see columbia casual as equal quality but less aspirational.
No. of Recommendations: 0
i see more risk in 25% sales being the globe's most fickle\trend customer, china.
see posterchild nike.
fwiw, i see columbia casual as equal quality but less aspirational.
Exposure to China is under 20%, but point taken. Its also really the only region that is growing quickly (growing +25% annually). I think there is lots of room for more growth there - there is a market there for their products, especially in the mid-term.
Not worried about Columbia Casual, if anything this sort of copy-cat just makes the LULU brand even stronger.
tecmo
...
No. of Recommendations: 0
Hope it works for you. You seem to have thought it out.
IP
No. of Recommendations: 3
Chip Wilson (founder) issued a letter
https://www.creativityfirstlulu.com/(BTW: I agree with Chip)
Highlights
* lululemon's challenges are rooted in the Board's failure to understand the brand. The Board allowed or enabled actions that consistently eroded the Company's premium position.
* The new CEO announcement shows the core of broken governance. The existing Board does not have the skillset to hire a world-class brand/product person who can deliver on the newest zeitgeist or style of the moment. The market response to the hiring of Heidi O'Neill creates an unnecessarily challenging start for her, and her selection doubles down on the Board's broken strategy.
* Billions of dollars in brand power have been lost, which cannot be regained with the same selection pattern of directors who lululemon continues to onboard. lululemon is not a toothpaste brand. Exiting one Proctor and Gamble bean counter on the Board for another will not fix lululemon's decline.
* Current Board members lack the skills to run a company whose core values are derived from innovation and culture. The Board is incapable of fixing itself because what it needs makes current directors uncomfortable: an injection of passionate, creative renegades who have a vision that will shake up the status quo.
* The core strategy has been disconnected from lululemon because internal brand and product leaders are trying to replicate mass-market, lower quality athletic retailers.
* The Board's significant overlapping professional network creates a club that destroys true independence and perpetuates an entrenched culture preventing necessary change.
Negotiations with the Board have failed despite a range of multiple offers for a long-term standstill, which included an offer that could have lasted as long as three annual meetings if our three director nominees were appointed to the then ten-person Board.
* The Board's self-interest and personal history have prevented any actual productive talks, including its demanding of an at least million-dollar escrow account for Wilson in a novel non-disparagement provision, which the Company failed to disclose in its preliminary proxy statement filing.
No. of Recommendations: 0
No. of Recommendations: 0
I am expecting a kitchen sink earnings report this quarter.
Sorry for being dense, but can you explain what you mean by that?
IP
No. of Recommendations: 2
"I am expecting a kitchen sink earnings report this quarter."
"Sorry for being dense, but can you explain what you mean by that?"
It's where management throw in all the bad news (and take an overly cautious position) at once so that future earnings reports will look (hopefully) much better by comparison.
No. of Recommendations: 2
What Lululemon needs right now is the kind of revitalization we’re seeing at Gap...
I was watching Bloomberg TV this morning, and the banter between the regular commentators about Lululemon products caught my ear. Keep in mind that these are investing professionals, who would, one hopes, understand the companies they are discussing.
One commentator essentially came out saying that he doesn't get Lulu, that he doesn't care how good a quality product they make, he's not paying that kind of money for workout clothes. It was really clear to me that he has no clue that they make casual dress clothes for the office as well, just as I had no clue that they sold anything other than yoga leggings until I went in to check out the store from an investing POV.
What LULU needs right now is to get their message out. I love my LULU pants. Wearing them right now. Zipper pockets and absolutely perfect for travel. I would never wear these to the gym or on the pickleball court, or to go running. I also never would have learned about them if I had not been shopping for a stock and wanted to see the inside of a store. Eldest loves his LULU clothing and appreciates the effortless quality they provide. I witnessed first hand how a store he had never stepped foot into previously was able to look up his previous orders and send to his home an item of on sale clothing that they did not have on hand. He has a business trip coming up and you can bet they will be packed. We are both frugal by nature, yet we fork over the money for these products because of the fit, styling, utility and durability.
Early in investing, I learned the hard lesson that a great product does not automatically make for a great company to invest in. I rode KERA down to zero as BLCO drove them into the ground with their superior funding, but a product so inferior to KERA's that the US Airforce at the time only approved KERA's non-laser vision correction for pilots. Until LULU can figure out a way to broaden their sales to a wider demographic than the LULUManiacs, I see their stock price continuing to decline. On the other hand, LULUimitators are getting that message, and broadly marketing their version of great designs to all, even though they are not made with the fabulous Lulu fabrics. Think Athleta, which I now also own travel clothes from.
I am wondering just how long LULU will continue to be considered cool enough not to advertise to anyone other than their VIP shoppers. And frankly those endless emails alienated me enough that I quickly unsubscribed. Athleta's I still click on. How low can LULU go?
IP,
who wants to want to buy this stock, but just can bring herself to do so
No. of Recommendations: 0
How low can LULU go?
Jim´s "There is a price for everything" (even dirt) comes to mind, and Warren´s former cigar butt philosophy if LULU continues to fall.
No. of Recommendations: 2
https://www.reddit.com/r/bitcheswithtaste/comments...Interesting LULU Reddit thread. Granted, from 2 years ago, but I can't imagine things have improved, and it confirmed and expanded on the negative impressions on corporate culture that I picked up on just by looking at the company. Very interesting talk on the origin of the name of the company.
They need to do so much change, that a change in brand entirely may be their only salvation.
IP
No. of Recommendations: 1
https://www.cnbc.com/2026/05/18/lululemon-proxy-wa...More Lulu drama...
The Vancouver-based athleticwear company is taking its battle with activist founder Chip Wilson public, writing in a letter to shareholders on Monday he has “outdated perspectives” and “troubling conflicts of interest” that will derail its turnaround plan, materials reviewed by CNBC show.
The letter, Lululemon’s first major public response to Wilson since his proxy battle ramped up late last year, comes after settlement talks with the retailer’s founder fell apart last week, materials reviewed by CNBC show. The missive lays out why the company’s strategy, its incoming CEO Heidi O’Neill and board nominees are ultimately best for shareholders as it urged them to vote in its favor and set June 25 as the date for its long-awaited annual meeting. I haven't seen the letter yet.
tecmo
...
No. of Recommendations: 0
https://www.msn.com/en-us/money/companies/is-lulu-...When I went shopping for my wife's birthday this past weekend, one of my stops was Lululemon. She has a bunch of athleisure and workout clothes from there, but they were purchased years ago. I figured I could assist with a simple refresh.
Instead, I left empty-handed.
My main issue was that there just wasn't that big a selection of core athletic items. The store seemed to have branched out more into everyday casual clothing, and those products filled the racks. The workout clothing they did have felt uninspired and came in unappealing colors. (Hot pink? No thanks.) Off to competitors Vuori and Alo Yoga I went.This aligns with my thinking, they need more focus on their core customers...
tecmo
...
