Bleak, bleak times for LULU. The company is imploding:
Net revenue for the quarter increased 11% to $384.6 million from $345.8 million in the first quarter of fiscal 2013.
Direct to consumer revenue increased to $66.0 million, or 17.2% of total Company revenues, in the first quarter of fiscal 2014, an increase from 15.6% of total Company revenues in the first quarter of fiscal 2013.
Gross profit for the quarter increased 15% to $195.7 million, and as a percentage of net revenue gross profit increased to 50.9% for the quarter from 49.4% in the first quarter of fiscal 2013.
The shorts are so dead in the water at these prices.
Went into a LULU store over the weekend and spent a good hour with my lady looking through the collection. What stands out is the fabrics. Nike, UA, Addidas, GAP...not even in the same category.
Sales person said she is amazed at how busy the men's section has been this summer. She said it was "slow at first but now...."...music to my ears.
My hope is the PE deal doesn't go through and the stock gets hit one more time. I will pile in to the biggest position I've ever had. This really is, along with Apple when I bought at $90 and Chipoltle when the wall street pack turned on it, among the truly great investment opportunities I've come across.
Plenty of room for expansion in the US. The whole world is wide open. They have a product that is unique and extremely profitable. The brand has cache. Men are adopting it. I would not be surprised to see LULU at $250 in two years IF they have an aggressive expansion plan, iron out operational issues and get the right product mix.
He works for someone. Was advocating the short in HLF with 1000 posts a day as it went from $35 to $70. Happy to have him here. It means his employer is screwed again and trying everything, including, "My Boy, this is a bad situation for you...." Yeah, about as bad as being long HLF from $35 to $70..lol.
Hey Vulture, just tell your client to flip, they're wrong...again.
And all this nonsense about it being too expensive at these levels...one word...London. Thank God, LULU opened that store because its resounding success is complete and total validation of the international growth value looking forward.
The company is a steal here. It's a steal at $50, it's a steal at $70. All they have to do is open stores and maintain quality control.
WSJ careful in their reporting. But people are talking and the price action indicates doors are opening for Chip Wilson and GS.
Always my favorite moment in a trade...when the opposite side realizes they're in big trouble and start calculating the potential losses of staying put. A lot of short covering this morning. Holding could mean $50 per share plus by Monday as the story emerges on who is willing to pay what....LULU is a growth story. Much of the country and the whole world beyond, still to be tapped. Go walk around East Hamton and see just how damaged the brand is....not at all.
Shorts are dead wrong at these levels.
Well look who arrived on the Lulu boards. The old vulture. Hey old sport, funding my rather large lulu position with all the money I made long in HLF. I guess you're short with what little you have left from shorting that stock. Results will be the same here.
Soon as I saw you posting here, I knew I was right.
I love this investment thesis. This is what the shorts think. They don't get the aspirational/luxury brand aspect at work here. They think women actually read financial news. that the brand is damaged. Take a walk in East Hampton, my friend...all Lulu. Brand is as hot as ever and going nowhere. See you at $65.
One customer is worth five anywhere else selling this stuff. Have you seen the margins? Best in the industry. They can't open more stores quickly enough and they have a whole wide world in front of them.
Anyone short this stock, where it is now, is going to get their head ripped off....slowly through 50, then all at once up to $65.
The writers get paid by the hedge funds who are short. They bombard the finical world with these silly articles. Same thing happened in Chipoltle and Netflix. Eventually, the balance sheet wins out. It always does and big do we have a great one at LULU.
Just buy more.
And the paid troll shows up. Hedgies getting desperate. Hope they plan on covering on this dip, going to be the last chance to get out for a long, long, long time.
This is Netflix and Chipotle all over again. Same arguments against the same, sparkling balance sheets.
You want to make a lot of money? Buy LULU and hold it.
It goes behind that. You can buy editorial with money, which is what's happening with LULU. There is simply no way to make it in the internet news and information finance world when you give away the editorial to the reader and the ads get two cents a click. You have to get revenue somehow...
Don't hear much about the the London store sales which indicate foreign markets are hungry for the brand. Or the fact the brand isn't damaged because 99% of LULU shoppers don't read the financial news. Or that fact that what Chip said wasn't offensive, he was just stating fact as a reason for the issues......
In the end, the fact Chip is back, is great for this company. He's proven, over and over, to lead a successful collaboration on the design and material sourcing of items women will buy. Now it's just rinse and repeat, into more store locations than ever before.
Hope it stays public, this is going to be a great ride.
It's actually funny what a shill they are for anyone with money and a big short position in LULU. Keep watching and reading all of the pieces searching for something, anything that is legitimately worrisome and they keep coming up with nothing.
Bottom line, this is a growth company just scratching the surface of its potential. I hope it isn't taken private. I'd prefer to ride it to $150 from here over the next two years.
In a world where UA has a 60PE, you think LULU, with the ability to open 60 stores a year is going to 10PE? Man, give tour money to charity and get out of this game while it can still do some good.
You're on the wrong side of this trade. It's as simple as that. But you want to fight the teen and lose your money, then its your call.
Imagine being short this stock? In a world where an UA has a 60PE? They can do whatever they want with the share price from here and since they already got the longs, the 24% short float is next up. Would not be surprised to see $70 in a month or so.
Exactly. Mr Market plunged the stock to get the weak longs. Now, they go after Shorty. It's going to only get worse, just like it did in Chipoltle...slowly they will inch it up to $50 then all at once they will rip your head off.
I feel bad for shorts in this stock. All the reasons in the world to bring it back to $70...and they will.
Yeah. No debt. Nothing but growth in front of it. Beloved brand by women....thanks, Einstein. JCP is what death looks like in retail. Mountains of debt, zero growth prospects, yet it's still humming along.
Chip Wilson ended the short party. The sooner you realize it's over, the more you save.
24% short float? Mr. Market took out the weak longs, now he's coming for the shorts. Stay stubborn, my friends. Ideally, you cover above $60.
I think Sam is a paid pawn of the significant short interest in this stock. Why else would he be rushed out to publicly knock down buyout rumors? Too many "neutral analysts" on the take in this internet age.
Bottom line, shorts can pay all the Sam Posner's, Motley Fools and Seeking Alpha's they want. Something very good id happening here and shorts best cover before it's $55.