Updated Buy Call on Lululemon Stock
"Furthermore, I calculated a fair value for Lululemon stock using my proprietary discounted cash flow model and I get a similar conclusion that the stock looks undervalued. I calculated an intrinsic value of $268. Lululemon stock price even after this increase is at $27. Even after applying a margin of safety, Lululemon stock still looks undervalued. So, I have updated my rating on Lululemon stock as a buy. even after this increase."
The speaker reinforces his bullish stance on Lululemon by highlighting his DCF analysis which values the stock at $268 against a current trading price of $27, and confirms his updated buy rating despite recent price gains.
Buy Recommendation on LULU Due to Undervaluation and NFL Partnership
"Lululemon's a stock I've been recommending as an undervalued growth stock you can buy right now. And I personally bought Lululemon stock for my own portfolio a few weeks ago, and even after this news and the share price rising, it's still undervalued. The current market price is $182. The intrinsic value per share I calculated for Lululemon is $255. I will reiterate my buy rating on Lululemon stock today."
The speaker reinforces his bullish stance on LULU by emphasizing its undervaluation, with a notable gap between the intrinsic value of $255 and its market price of $182. He points to the new NFL partnership as a catalyst that may boost market share and premium pricing, and reiterates his buy rating despite minor share price fluctuations.
Lululemon Expands with NFL Fan Apparel Lineup
"yeah very uh upbeat news for them today given the tough year that they've had, they entered an agreement with the National Football League as well as sports merchandiser fanatics to develop a lineup of fan apparel. This comes as the retail retailer searches for new ways of growth. Uh the line includes clothes for all 32 NFL teams and will be sold through the NFL and Fanatic shops. The merchandise will include things like hoodies and other core products across Lululemon's key lines."
The speaker highlights Lululemon's new deal to develop a fan apparel lineup in partnership with the NFL and Fanatics, viewing it as a fresh growth opportunity in light of a challenging past year. The commentary is upbeat despite the company being down significantly earlier in the year.
Lululemon Teams Up with NFL and Fanatics
"Yeah, Lululemon. the ticker LUL LU. So, their shares is also doing well this morning, up more than 3% now. And that is because the company has said that they have made an arrangement with the NFL and Fanatics to develop a line of fan apparel. And apparently that line will include clothes for all 32 NFL teams will start selling from October 28th both through the NFL and Fanatic shops."
Lululemon (LUL) shares have risen over 3% after announcing a deal with the NFL and Fanatics to launch a fan apparel line for all 32 NFL teams, set to begin sales on October 28th.
Lululemon Expands Beyond Yoga with NFL Deal
"Lululemon, ticker LULU. We're seeing shares also in the green light. The other two stocks we've been talking about, up as much as 4.9%. And this is after a deal between Lululemon and the NFL, a first time apparel deal here. We are seeing Lululemon really just trying to branch out into the sports space. I know Lululemon for leggings, but apparently they're doing a collab here with uh NFL and that'll be kind of a competitive sports push. uh especially kind of pulling away or diversifying from its yoga roots."
The speaker notes that ticker LULU is rallying, driven by a new deal with the NFL. This marks a strategic move for Lululemon as it attempts to diversify its brand from its traditional focus on yoga and leggings into the broader sports apparel market.
Trade Call: Buy Lululemon at Undervalued Levels
"Now, let's start with Lululemon stock. The apparel retailer, the athleisure company, is trading at a current market price of $178 per share. The fair value I calculated for Lululemon is $256, signaling that this stock is undervalued at the current market price. I'm forecasting that Lululemon's free cash flow increases from 1.36 billion in 2025 to 2.31 billion in 2034. Why are they down so much this year? Well, mostly because of tariffs. The company imports a tremendous amount of products into the United States, and higher tariffs have made their products more expensive to U.S. consumers."
The speaker recommends buying Lululemon, noting its market undervaluation compared to a calculated fair value of $256, driven by robust free cash flow growth and the impact of tariffs on pricing.
Bearish Trade Call for Lululemon (LULU)
"The second one is Lululemon, which I told you guys to avoid in my last video. Its trading at $167 per share and down 55% year to date, with comparable sales dropping to 1% and a massive disappointment in guidance. The CEO even admitted that the company has become too predictable in its casual offerings, missing key trends. I think Lululemon has the potential to be a trap because you cant really predict consumer preferences, and personally, Im not touching it."
The speaker issues a bearish trade call on Lululemon (LULU), citing its significant decline (55% YTD), falling comparable sales, and acknowledged stagnation in product trends by the CEO. Despite the stock trading at an attractive valuation, the uncertainty around consumer trends and market dynamics makes it a potential trap, leading the speaker to avoid investing in it.
Investors Dumped Lululemon Stock After Earnings. Here is What Spooked Them
"LULU (earnings update): -20% post-earnings despite 7.3% rev growth & 2.3% EPS growth. Key concerns: US comps -2%, SG&A up to 39.8% of rev, net income -2% YoY, lowered EPS guidance ($2.85-2.90 Q2, $14.58-14.78 FY25), tariff headwinds, and most concerning - inventories +23% YoY vs 7% sales growth signaling demand weakness."