this doesn't seem like an icahn type of play. i am a big fan of icahn, but he would have been entering before this conference call, and trying to get a board seat to agitate for change. lulu management is right on track here. although maybe he is using the same playbook as netflix. getting into a stock that was heavily shorted.
By their earnings LULU has demonstrated they have potential in the marketplace. However it seems market sentiment may have originally overvalued the company. I don't see their share price going up over $45 again today. I would look for the stock to settle in the $43.50-$44.00 range. Look at yesterdays chart! Anyway GLTA!
Sentiment: Strong Sell
I always sell into the heavy volume - it never lasts and you get profit taking - then buy back. I sold yesterday and bought some put options. They aren't working out as of yet but next week look to profit on them. Short squeeze still in effect here but will end. Long run LULU is a buy if you're an investor.
Is it under $30 yet ????? More of your Puts expired worthless ... you are becoming a pro at it !
Sentiment: Strong Buy
The analysts look at the balance sheet and worry about decline in SS sales and the profit margin.
1. SSS and profit margin at the height of the craze last year were unsustainable. The fact they are only down incrementally is awesome. The fact is, each of these stores is HUGELY profitable. Just not quite as hugely profitable as they were last year. So what? They're still HUGELY PROFITABLE.
2. Any decline is and will continue to be made up for in opening new LULU's. New LULU Men's. New Avviva's.
3. Avviva did $1,000 per square foot. HUGEY PROFITABLE. There are ten or so open. 25 showrooms, seeding the arrival of 25 more. More showrooms in the works. This will be a 200 store chain in seven years.
4. International. The London store doubled expectations in year one. HUGELY PROFITABLE. Everything in Asia so far, HUGELY PROFITABLE. Men are jumping in. That has the potential to double sales all on its own.
People act like this is a brand teetering on unprofitability when the reality is, they are printing money and have endless avenues to grow.
So, focus on incremental declines if you chose. The reality is they will grow through it, easily, on their way to being a $20 billion brand.
seems like they should be buying stock back as soon as possible, to get it at a good price.
most of the stock is owned by chip, advent and a few institutions. the shorts are in a world of trouble, although quite a bit was covered today.