Yahoo Finance's Julia La Roche sits down with executive chairman and former CEO of Starbucks Howard Schultz
|Bid||57.50 x 200|
|Ask||58.51 x 100|
|Day's Range||57.87 - 58.79|
|52 Week Range||47.26 - 72.70|
|PE Ratio (TTM)||27.54|
|Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
After Lululemon reported sales growth and an earnings beat last quarter, some on Wall Street proclaimed that the company’s do-it-yourself distribution strategy made it unlike other sports-apparel retailers, such as Nike and Under Armour, that are feeling the promotional pressure. With Lululemon planning a warehouse sale in Canada at the end of September, the company is on pace to have three such sales in two quarters. “This increase in frequency of warehouse sales could be in response to slowing brand momentum amidst rising competitive pressure and shifting fashion trends,” Canaccord analyst Camilo Lyon writes Friday.
LB stock is down more than 40% so far in 2017, a poor performance even by the standards of the struggling brick-and-mortar retail industry. Anaylst Oliver Chen — a long-time bull on LB stock — cited falling bra prices as a major headwind going forward. The argument from Cowen on bra pricing is supported by recent L Brands results — and by looking at the industry as a whole.
At the end of 2015, L Brands (LB) was sitting near a new all-time high, but it's been all down hill since then. Part of the problem has been general retail weakness, but a lot of it is L Brands own missteps, particularly with its Victoria's Secret stores, which have been pressured by competition and changing tastes. Is there any hope for L Brands?