rakuten left binance left net_left adver left
Detail

Lululemon: Tough to Match Quality of Athleisure Pioneer

Lululemon (LULU) knocked one right out of the ballpark with its incredible second quarter, sending shares soaring as high as 14.4% before retreating modestly. Shares of the...
Lululemon: Tough to Match Quality of Athleisure Pioneer © Reuters. Lululemon: Tough to Match Quality of Athleisure Pioneer

Lululemon (LULU) knocked one right out of the ballpark with its incredible second quarter, sending shares soaring as high as 14.4% before retreating modestly.

Shares of the athleisure play are now up around 10% since before the company revealed its blowout results. (See LULU stock charts on TipRanks)

The stock, which already had a stretched multiple going into the quarter, remains as stretched as ever. However, the multiple isn't as stretched as it could be given its momentum and the likelihood that there's more outperformance to come over the next year, even as consumer spending looks to take a bit of a breather amid the latest rise in COVID-19 cases.

Lululemon is not a cheap stock at 67.3 times trailing earnings. In this kind of market though, you've got to pay for quality. As far as quality goes, it's tough to match Lululemon right now. As such, I remain bullish on the stock after earnings.

Omnichannel Bets Paying off

The Vancouver-based athleisure retailer isn't just a maker of fashionable yoga pants for women anymore. It's become so much more. The company is mostly responsible for the "athleisure" trend in fashion, and has since made major waves in menswear. The brand is strong, and it's showing signs of getting even stronger.

With the perfect mix of e-commerce and brick-and-mortar, Lululemon gets an A grade for executing on an omnichannel basis.

Sales growth (on a constant-currency basis) was 56% in Q2. That's truly unbelievable for a clothing retailer with a $54-billion market cap.

The appetite for discretionary goods is strong, and Lululemon has proven it can command its magnificent margins with its powerful brand. The brand has fended off some pretty stiff competition of late, which goes to show what robust brands are truly capable of.

At writing, shares of LULU are trading at 10.2 times sales and 67.3 times trailing earnings. That's not a multiple indicative of a retailer. It's one that ought to be slapped on a fast-growing tech stock.

Undoubtedly, Lululemon has made major strides as its direct-to-consumer business model continues to pay off in the form of enviable margins.

Combined with an unmatched brand and continued sales momentum, LULU stock may actually be worth more than it's commanding right now.

The market continues to reward growth, and Lululemon's "stretched" multiple seems more than sustainable.

Wall Street's Take

According to TipRanks’ analyst rating consensus, LULU stock comes in as a Strong Buy. Out of 16 analyst ratings, there are 13 Buy recommendations, and three Hold recommendations.

The average LULU price target is $465.81. Analyst price targets range from a low of $410 per share, to a high of $520 per share.

Bottom Line

Despite the slew of positives, investors should be aware of the near-term risks that could cause LULU stock to fall into a downward dog.

Most notably, supply disruptions in Vietnam, which pressured Nike (NYSE:NKE) on Monday, could be a source of concern.

Disclosure: Joey Frenette doesn't own shares of any company mentioned at the time of publication.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

ig right nyse right Neteller adver right
APPROVED BROKERS
Row 1 Left net_home_top Row 1 Right Row 2 Left Row 2 Center Row 2 Right Main Right TOP 07 Main Right TOP 06 Main Right TOP 05 Main Right TOP 04 Main Right TOP 03 Main Right TOP 01
22-09-2021 09:51:18 (UTC+7)

EUR/USD

1.1726

+0.0003 (+0.03%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (4)

Sell (1)

EUR/USD

1.1726

+0.0003 (+0.03%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (4)

Sell (1)

GBP/USD

1.3662

+0.0003 (+0.02%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (1)

Sell (5)

USD/JPY

109.42

+0.20 (+0.19%)

Summary

Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (4)

Sell (3)

AUD/USD

0.7251

+0.0021 (+0.28%)

Summary

Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (4)

Sell (1)

USD/CAD

1.2790

-0.0025 (-0.20%)

Summary

Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (0)

Sell (5)

EUR/JPY

128.30

+0.28 (+0.21%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (3)

Sell (4)

EUR/CHF

1.0835

+0.0011 (+0.10%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (4)

Gold Futures

1,778.55

+0.35 (+0.02%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (0)

Silver Futures

22.742

+0.131 (+0.58%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Copper Futures

4.2198

+0.1098 (+2.67%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Crude Oil WTI Futures

71.12

+0.63 (+0.89%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (6)

Sell (1)

Brent Oil Futures

74.87

+0.51 (+0.69%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (9)

Sell (0)

Natural Gas Futures

4.838

+0.035 (+0.73%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

US Coffee C Futures

183.70

+1.10 (+0.60%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Euro Stoxx 50

4,097.51

+53.88 (+1.33%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

S&P 500

4,354.18

-3.55 (-0.08%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

DAX

15,348.53

+216.47 (+1.43%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

FTSE 100

6,980.98

+77.07 (+1.12%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (10)

Sell (0)

Hang Seng

24,221.54

+122.40 (+0.51%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (2)

US Small Cap 2000

2,190.36

+8.15 (+0.37%)

Summary

↑ Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (1)

Sell (6)

IBEX 35

8,756.00

+100.60 (+1.16%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (1)

BASF SE NA O.N.

62.280

+0.620 (+1.01%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

Bayer AG NA

45.70

+0.47 (+1.04%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (7)

Sell (1)

Allianz SE VNA O.N.

187.45

+3.59 (+1.95%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (8)

Sell (0)

Adidas AG

281.90

+1.38 (+0.49%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (6)

Deutsche Lufthansa AG

8.377

-0.287 (-3.31%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (2)

Sell (8)

Siemens AG Class N

145.32

+3.06 (+2.15%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (2)

Sell (9)

Deutsche Bank AG

10.095

-0.135 (-1.32%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (6)

Sell (3)

 EUR/USD1.1726↑ Buy
 GBP/USD1.3662Sell
 USD/JPY109.42Buy
 AUD/USD0.7251Buy
 USD/CAD1.2790Sell
 EUR/JPY128.30Sell
 EUR/CHF1.0835↑ Sell
 Gold1,778.55↑ Buy
 Silver22.742↑ Buy
 Copper4.2198↑ Buy
 Crude Oil WTI71.12↑ Buy
 Brent Oil74.87↑ Buy
 Natural Gas4.838↑ Buy
 US Coffee C183.70↑ Buy
 Euro Stoxx 504,097.51↑ Buy
 S&P 5004,354.18↑ Sell
 DAX15,348.53↑ Buy
 FTSE 1006,980.98↑ Buy
 Hang Seng24,221.54Neutral
 Small Cap 20002,190.36↑ Sell
 IBEX 358,756.00Neutral
 BASF62.280↑ Sell
 Bayer45.70↑ Buy
 Allianz187.45↑ Buy
 Adidas281.90↑ Sell
 Lufthansa8.377↑ Sell
 Siemens AG145.32↑ Sell
 Deutsche Bank AG10.095Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,660/ 5,710
(10/ 10) # 816
SJC HCM5,650/ 5,715
(5/ 5) # 819
SJC Hanoi5,650/ 5,717
(5/ 5) # 821
SJC Danang5,650/ 5,717
(5/ 5) # 821
SJC Nhatrang5,650/ 5,717
(5/ 5) # 821
SJC Cantho5,650/ 5,717
(5/ 5) # 821
Cập nhật 22-09-2021 09:51:20
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,777.37+12.240.69%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2149021910
RON 95-II,III2139021810
E5 RON 92-II2014020540
DO 0.05S1602016340
DO 0,001S-V1637016690
Dầu hỏa1508015380
ↂ Giá dầu thô thế giới
WTI$71.09-0.77-1.08%
Brent$74.84-0.73-0.97%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.630,0022.860,00
EUR26.007,0827.360,60
GBP30.295,3831.561,13
JPY203,28215,04
KRW16,6220,24
Cập nhật lúc 09:47:20 22/09/2021
Xem bảng tỷ giá hối đoái
binance main right Fxpro aetos main right adver main right