$Lululemon Athletica(LULU)$ My

My take: This is a multiple reset, not a broken brand. NA comps slowed, but DTC muscle + men’s + international keep the engine alive.

What matters: inventory discipline, new product cycles, and whether China/Intl offsets softer North America. Gross margin is the tell.

Framework: If growth normalizes to mid-teens with clean inventory, low-20s EBITDA multiples re-rate. If comps stay soft, it’s a value trap.

Trade plan: Starter at capitulation near multi-year support; add only on improving inventory turns and traffic.

Risk: fashion miss, markdowns, copycat pressure.

LULU isn’t dead—it’s de-rated. I buy brands when the multiple resets and the product still walks off shelves.

Lulu Drops for 3 Quarters: Back to 2020 Lows - Buy the Dip?

Lululemon plunged again as it slashes earnings outlook, projects $240 million tariff hit. Lululemon topped second-quarter earnings estimates but slightly missed revenue expectations. The company said the effect of tariffs and the removal of the de minimis exception are hitting its sales. In last earnings, Lululemon already lost 20% on the day. Affected by tariff and Alo's hit, lululemon lost 56% YTD. Would you consider buying the dip on Lululemon? Lululemon products or Lululemon stock — which would you choose?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":476917282214664,"tweetId":"476917282214664","gmtCreate":1757441185918,"gmtModify":1757443131545,"author":{"id":4219757744744272,"idStr":"4219757744744272","authorId":4219757744744272,"authorIdStr":"4219757744744272","name":"PittyMeat","avatar":"https://community-static.tradeup.com/news/e5fd485716cf88fc37b4f85cb1a1878e","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.09.03","individualDisplayEnabled":0},"individualDisplayBadges":[],"fanSize":4,"starInvestorFlag":false},"themes":[{"themeId":"d62896e60eef444d9d769e91e3a03e13","categoryId":"7a15628ce2174325bddc6229505e0d70","name":"Lulu Drops for 3 Quarters: Back to 2020 Lows - Buy the Dip?","type":0,"rnLink":"https://laohu8.com/RN?name=RNTheme&page=/theme/detail&rndata={\"themeId\":d62896e60eef444d9d769e91e3a03e13}&rnconfig={\"headerBarHidden\": true}","description":"Lululemon plunged again as it slashes earnings outlook, projects $240 million tariff hit. \nLululemon topped second-quarter earnings estimates but slightly missed revenue expectations. The company said the effect of tariffs and the removal of the de minimis exception are hitting its sales.\nIn last earnings, Lululemon already lost 20% on the day.\nAffected by tariff and Alo's hit, lululemon lost 56% YTD.\nWould you consider buying the dip on Lululemon?\nLululemon products or Lululemon stock — which would you choose?","image":"https://community-static.tradeup.com/news/1b619ba25693b8a926673803417916a3"}],"images":[],"coverImages":[],"html":"<html><head></head><body><a href=\"https://ttm.financial/S/LULU\">$Lululemon Athletica(LULU)$&nbsp;</a>&nbsp;\nMy take: This is a multiple reset, not a broken brand. NA comps slowed, but DTC muscle + men’s + international keep the engine alive.\nWhat matters: inventory discipline, new product cycles, and whether China/Intl offsets softer North America. Gross margin is the tell.\nFramework: If growth normalizes to mid-teens with clean inventory, low-20s EBITDA multiples re-rate. If comps stay soft, it’s a value trap.\nTrade plan: Starter at capitulation near multi-year support; add only on improving inventory turns and traffic.\nRisk: fashion miss, markdowns, copycat pressure.\nLULU isn’t dead—it’s de-rated. I buy brands when the multiple resets and the product still walks off shelves.</body></html>","htmlText":"<html><head></head><body><a href=\"https://ttm.financial/S/LULU\">$Lululemon Athletica(LULU)$&nbsp;</a>&nbsp;\nMy take: This is a multiple reset, not a broken brand. NA comps slowed, but DTC muscle + men’s + international keep the engine alive.\nWhat matters: inventory discipline, new product cycles, and whether China/Intl offsets softer North America. Gross margin is the tell.\nFramework: If growth normalizes to mid-teens with clean inventory, low-20s EBITDA multiples re-rate. If comps stay soft, it’s a value trap.\nTrade plan: Starter at capitulation near multi-year support; add only on improving inventory turns and traffic.\nRisk: fashion miss, markdowns, copycat pressure.\nLULU isn’t dead—it’s de-rated. I buy brands when the multiple resets and the product still walks off shelves.</body></html>","text":"$Lululemon Athletica(LULU)$ My take: This is a multiple reset, not a broken brand. NA comps slowed, but DTC muscle + men’s + international keep the engine alive. What matters: inventory discipline, new product cycles, and whether China/Intl offsets softer North America. Gross margin is the tell. Framework: If growth normalizes to mid-teens with clean inventory, low-20s EBITDA multiples re-rate. If comps stay soft, it’s a value trap. Trade plan: Starter at capitulation near multi-year support; add only on improving inventory turns and traffic. Risk: fashion miss, markdowns, copycat pressure. LULU isn’t dead—it’s de-rated. I buy brands when the multiple resets and the product still walks off shelves.","highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/476917282214664","repostId":0,"isVote":1,"tweetType":1,"viewCount":2150,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["LULU"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":601,"optionInvolvedFlag":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/476917282214664"}