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Lululemon drops $10.54 a share in one day despite beating estimates

Posted on 9/11/15 at 7:45 am
Posted by goodbuds
Augusta, Georgia
Member since May 2015
306 posts
Posted on 9/11/15 at 7:45 am
I usually don't buy stocks that don't pay dividends, but I've been thinking about getting some of this one.

I like their product...yoga pants. I figure my dividends can be watching women's jiggily rear ends when they walk while wearing their product.

Their earnings report beat estimates, but they are down because of the dock worker's strike on the west coast that backed up inventory.

They believe they can unload this inventory without having to markdown product.

What do you guys think?
Posted by Zilla
Member since Jul 2005
10599 posts
Posted on 9/11/15 at 9:31 am to
8 Billion dollar yogo pants company ? yikes... see their P/E ? .... it might go up, but at a quick glance my instincts say it's the type of company that has a lot of room the other way...
Posted by Bearded_Chow25
D-town Boogie
Member since Dec 2014
114 posts
Posted on 9/11/15 at 9:39 am to
LULU has been on my watch list for a while. My sister spends all my parents money there. I own a few of their shirts and shorts which are really good quality/expensive for athletic gear, but then again, it seems people are wearing this stuff even when they don't work out.

I believe GAP, along with a few other companies are getting ready to launch their own brand which will create more competition.

But I like it because when i look around I see their logo everywhere and even noticed a good bit of guys wearing it recently... No homo.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37162 posts
Posted on 9/11/15 at 10:17 am to
Looks like their forecast was a bit below analysts expectations which also may figure into the drop.

With the drop, their forward P/E looks more in line with the industry of specialty clothing retailers.

As long as the economy stays up, women will do yoga and wants to wear expensive yoga clothes.

If the economy slows, they will start wearing cheaper brands.
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