Should you buy Lululemon stock? (April 2024)

Published first at www.3minutebre...
Lululemon stock analysis. Ticker: $LULU
Lululemon stock has fallen 33% this year taking the share price back to where it was in December 2020. At the current price, the company now has a market value of 42.4 billion dollars. With 2.2 billion of cash on the balance sheet and no debt the enterprise value is just over 40 billion.
In the company’s recent annual report, Lululemon reported a 19% increase in revenue to 9.6 billion and a 16% increase in net income to $1.6 billion. International revenue grew 54% and gross margins increased to 58% which is an impressive figure for a retailer.
Considering these numbers, there’s a clear argument that the sell off is overdone. After all, the company’s PE ratio of 27 now sits near the bottom of its historical range.
However, there are clear reasons that explain why Lululemon stock has come under pressure.
The first was contained in the company’s outlook. CEO Calvin McDonald said that there’s been a recent shift in the US consumer leading to a slower start for the year. As a result, Lululemon gave a cautious outlook where it expects revenue to grow 11 to 12% this year.
Considering Nike forecast declining sales in the first half of the year, that sort of growth looks pretty good. But it’s still a clear step down from recent levels. After all, Lululemon grew 19% last year, 30% the year before and 42% in 2022.
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[@MrPtbr]

Hello, i like your videos. Nice and simple. Could you do Main Street Capital (MAIN) ? Thanks :)

[@adoniss1144]

Can you analyse SBUX please?

[@vinzvega3422]

Great analysis as always! I like your format very much. Could you analyze MELI?

[@overlookedalpha]

It's on the list

[@Gizzmo112]

As a dutch person I cant buy a company that starts with lul

[@martinithechobit]

Better now at this price.