🌟🌟🌟For nearly a decade
$Lululemon Athletica(LULU)$ was the Hermes of Yoga, a fashion house with a commanding consumer moat so strong that it could charge USD 120 premium for leisure gym wear while retail masses happily queued up to buy their gym gear.
But it has recently experienced a severe drop to its share price. It is now down 37% year todate and 59% in the past year.
Is it time to buy Lulu or say good bye?
At a 10x P/E ratio and despite its short term volatility, Lulu has crossed the threshold from an overhyped fashion story into an undeniably undervalued and oversold stock.
Lulu is still profitable with 55% gross margins and is a 76% discount to its 10 year historic valuation baseline.
Lulu's revenue in mainland China has jumped by 28% last quarter and comparable international store sales have also increased by 26%.
As Warren Buffett likes to say: When there is fear in the market it is time to be greedy.
@Tiger_comments @Tiger_SG @TigerStars
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