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Does anyone besides me remember the Little Lulu cartoon? They were shown on channel 38 on the Willie Whistle show. As I remember, I would stare at the TV until I had “X’s” for eyes, but when Little Lulu came on – that was my cue to get up and go play with Spridle. I hated that cartoon…HATED IT.
Things got a little better when I got older and saw the movie, “To Sir with Love” starring Sydney Poitier. Now this movie wasn’t that much better than the Little Lulu cartoon. In fact, I don’t even remember the plot.
What I do remember is at the end of the movie he put on boxing gloves and some girl named “Lulu” sang the theme song to the movie.
Which brings me to finding a stock I like in this very confuzzled market. Well, when in doubt, go with earnings earnings earnings. When it comes to earnings, this stock is a LULU!
Today I bought lululemon athletica (LULU) at 39.13. I will sell it in 4 to 6 weeks at 45.09. Here’s why I like LULU:
First of all, look at this chart…look at how it just rests in my hand:
LULU’s stock is up 250% in the last 52 weeks. Why? Because they are making money hand over fist, that’s why.
Lululemon Athletica Inc. engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth in Canada, the United States, and Australia. The company’s apparel products include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise an array of items, such as bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. The company sells its products through its retail stores; independent franchises; and a network of wholesale accounts that includes yoga studios, health clubs, and fitness centers, as well as directly through e-commerce. As of January 31, 2010, it operated 124 company-owned and franchise stores under the lululemon athletica and ivivva athletica brand names.
Someone must like their products. They opened up a store on Nassau St in Princeton and that real estate ain’t cheap, so they must have some ridiculous margins on the clothing they sell AND they must be selling a lot of it. So what’s so great about selling yoga apparel? Don’t ask me, ask the loyal customers. It’s the pants. It’s all in the pants. . The signature Lulu piece is the $98 Groove Pant. Lulu pants made out of formfitting Luon, a fabric celebrated mainly for its ability to shape and display the buttocks. Go to any high end neighborhood, the Luluheads are everywhere and they are willing to talk about Lululemon:
I've purchased only little items there, but as little as the purchase the staff is always friendly. They also give your purchase in awesome reusable totes that are great for toting lunch or groceries. Each store also focuses on a lot of local outdoor/physical activities so on their board/table by the door there are plenty of maps, business cards, and information on all the fun stuff to do in the Princeton area (and there are a lot!).
Which brings me to my FAVORITE thing about Lululemon- their free Sunday morning yoga sessions. My best friend and I make it a point to go every Sunday, and we've discovered a love for yoga through each practice. Like the previous reviewer said, get there a little early to secure your spot,as the place will fill up fast! Each week is taught by a local instructor, so it's cool because you get exposed to all different ways of instruction and it's a good opportunity if you're looking to attend a class on the regular (many of the instructors are from Yoga Above on Nassau or the Princeton Yoga Center on 508 or CanDo fitness at Forrestral).They'll often have their class schedules available after class. I've only had one week where I wasn't in love with the instructor, but it was free, so it was fine!!
On its Web site, Lululemon says the training program has been "such a success that the Lululemon people have created a life for themselves that most people could only dream of. Yeah…okay. Pass the Koolaid….or leggings. I guess it’s hard to explain…you have to be there. They are planning on expanding from yoga to tri-athletes…..another cult to lure into the stores. Luluheads (ie the customers) think they are part of a secret club. Every celebrity you can possibly imagine in People and Us magazine can be seen wearing Lulu clothes. And yes..their butts are perfect.
So what about the perfectly good money that springs from these yoga mats?
For the first quarter of fiscal 2010, the company expects to earn between 18 cents and 20 cents per share, and $1 to $1.05 per share for the full year. ANAL-ysts are predicting first quarter earnings of 17 cents per share, and full year profits of 96 cents per share. That’s brilliant you ANAL-ysts. The company has destroyed earnings estimates every quarter and you ANAL-ysts go and make estimates below what the company has just said. They pay you guys money to do that on Wall Street?
That’s all well and good, but based on what $$$MR. MARKET$$$ has seen and heard about yoga and every woman in the world wanting to wear these pants, the 2010 revenues are going to be $675 million which will translate to earnings of $1.35 per share. If you multiply this number times the 12 month trailing PE of 48, you get a share price of $1.35 x 48 = $64.80. Yup..that’s way past my target any way you do the math. You just cannot lose with this company. Can’t LOSE!
Ask the head yogi:
Christine Day, lululemon’s CEO stated: “We are very pleased with the growing sales momentum in our business which has accelerated as the economy has improved and with some of our key initiatives which have taken hold, such as expanding our running line, elevated product to give more value to our customers, and our e-commerce launch. Our 29% comparable-store sales increase reflects the strength of the lululemon brand driven by our quality, design, product innovation and unique positioning. We have seen our e-commerce business really take off. I think we’ve seen it slow a little bit because of product availability over the last few weeks and that’s been something that we’ve really been working on and driving the units to that because we don’t want to obviously frustrate our guests there. “
In other words, the crap is FLYING off of the shelves. Now don’t get me wrong, sit down, take a deep breath. Meditate and clear your mind. Now go fill your bank account with cash. Thanks LULU!!
I am HUGE!!!
$$$MR. MARKET$$$
Things got a little better when I got older and saw the movie, “To Sir with Love” starring Sydney Poitier. Now this movie wasn’t that much better than the Little Lulu cartoon. In fact, I don’t even remember the plot.
What I do remember is at the end of the movie he put on boxing gloves and some girl named “Lulu” sang the theme song to the movie.
Which brings me to finding a stock I like in this very confuzzled market. Well, when in doubt, go with earnings earnings earnings. When it comes to earnings, this stock is a LULU!
Today I bought lululemon athletica (LULU) at 39.13. I will sell it in 4 to 6 weeks at 45.09. Here’s why I like LULU:
First of all, look at this chart…look at how it just rests in my hand:
LULU’s stock is up 250% in the last 52 weeks. Why? Because they are making money hand over fist, that’s why.
Lululemon Athletica Inc. engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth in Canada, the United States, and Australia. The company’s apparel products include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise an array of items, such as bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. The company sells its products through its retail stores; independent franchises; and a network of wholesale accounts that includes yoga studios, health clubs, and fitness centers, as well as directly through e-commerce. As of January 31, 2010, it operated 124 company-owned and franchise stores under the lululemon athletica and ivivva athletica brand names.
Someone must like their products. They opened up a store on Nassau St in Princeton and that real estate ain’t cheap, so they must have some ridiculous margins on the clothing they sell AND they must be selling a lot of it. So what’s so great about selling yoga apparel? Don’t ask me, ask the loyal customers. It’s the pants. It’s all in the pants. . The signature Lulu piece is the $98 Groove Pant. Lulu pants made out of formfitting Luon, a fabric celebrated mainly for its ability to shape and display the buttocks. Go to any high end neighborhood, the Luluheads are everywhere and they are willing to talk about Lululemon:
- Disclaimer: I haven't actually ever bought anything from Lululemon. As a poor college student, their products are WAY out of my budget. However, their FREE yoga sessions on Sunday mornings keep me coming back every week. Top yoga instructors in the area are invited to teach a class each week. You can bring your own mat or borrow one of theirs. Oh, and be sure to arrive around 30 minutes early to get a good spot (or a spot at all), as each session tends to be really full.
- Lululemon was brought to my awareness by a bike-riding enthusiast friend of mine, who swore up and down by their tops and bottoms for physical acitvities. I've never been a person who wants to pay more than 20 bucks on stuff I'm going to get sweaty in, and at that time they were only opened in NYC.
I've purchased only little items there, but as little as the purchase the staff is always friendly. They also give your purchase in awesome reusable totes that are great for toting lunch or groceries. Each store also focuses on a lot of local outdoor/physical activities so on their board/table by the door there are plenty of maps, business cards, and information on all the fun stuff to do in the Princeton area (and there are a lot!).
Which brings me to my FAVORITE thing about Lululemon- their free Sunday morning yoga sessions. My best friend and I make it a point to go every Sunday, and we've discovered a love for yoga through each practice. Like the previous reviewer said, get there a little early to secure your spot,as the place will fill up fast! Each week is taught by a local instructor, so it's cool because you get exposed to all different ways of instruction and it's a good opportunity if you're looking to attend a class on the regular (many of the instructors are from Yoga Above on Nassau or the Princeton Yoga Center on 508 or CanDo fitness at Forrestral).They'll often have their class schedules available after class. I've only had one week where I wasn't in love with the instructor, but it was free, so it was fine!!
- Once you get over the initial sticker shock, you will find yourself among the rest of us devoted Lululemon lovers willing to shell out $90 for a pair of yoga pants. Now, whether you choose to do yoga in them is up to you.
- All true, but socially speaking, Luluheads are much like sailors who wear their deck shoes in town. Oh, what, these? Why, yes, I do happen to own a boat. Tight yoga pants are a nice way of letting people know that you’re spiritual and healthy, can pay $20 a class for yoga, and are very flexible.
- Thanks for the shout out to my blog, Lululemon Addict. (I never knew we were called Lumonheads and to be honest I don't care for the term). I am a Lululemon wearer who *doesn't* do yoga or studio classes. I could care less about Lululemon's manifesto but I do like their focus on the customer and quality. Women buy Lululemon because it is not only stylish but technically and functionally superior to nearly every other woman's brand on the market.
On its Web site, Lululemon says the training program has been "such a success that the Lululemon people have created a life for themselves that most people could only dream of. Yeah…okay. Pass the Koolaid….or leggings. I guess it’s hard to explain…you have to be there. They are planning on expanding from yoga to tri-athletes…..another cult to lure into the stores. Luluheads (ie the customers) think they are part of a secret club. Every celebrity you can possibly imagine in People and Us magazine can be seen wearing Lulu clothes. And yes..their butts are perfect.
So what about the perfectly good money that springs from these yoga mats?
- LULU earned $28.5 million, or 40 cents per share in the quarter ending January 31, 2010, up from $10.9 million, or 16 cents per share in the year-ago period. Sales for the fourth-quarter skyrocketed to $160.6 million, up 55% from $103.0 million in the similar period a year prior.
- Gross profit for the quarter increased by 67.6% to $86.6 million, and as a percentage of net revenue gross profit increased to 53.9% for the quarter from 49.7% in the fourth quarter of fiscal 2008.
- Lululemon widely beat the estimates of ANAL-ysts who predicted earnings of 29 cents per share on sales of $143.5 million.
- Net revenue for the fiscal year increased 28.1% to $452.9 million from $353.5 million in fiscal 2008. Net revenue from corporate-owned stores was $393.5 million, an increase of 24.7% from $315.5 million in fiscal 2008, and comparable-store sales increased by 9% on a constant-dollar basis.
For the first quarter of fiscal 2010, the company expects to earn between 18 cents and 20 cents per share, and $1 to $1.05 per share for the full year. ANAL-ysts are predicting first quarter earnings of 17 cents per share, and full year profits of 96 cents per share. That’s brilliant you ANAL-ysts. The company has destroyed earnings estimates every quarter and you ANAL-ysts go and make estimates below what the company has just said. They pay you guys money to do that on Wall Street?
That’s all well and good, but based on what $$$MR. MARKET$$$ has seen and heard about yoga and every woman in the world wanting to wear these pants, the 2010 revenues are going to be $675 million which will translate to earnings of $1.35 per share. If you multiply this number times the 12 month trailing PE of 48, you get a share price of $1.35 x 48 = $64.80. Yup..that’s way past my target any way you do the math. You just cannot lose with this company. Can’t LOSE!
Ask the head yogi:
Christine Day, lululemon’s CEO stated: “We are very pleased with the growing sales momentum in our business which has accelerated as the economy has improved and with some of our key initiatives which have taken hold, such as expanding our running line, elevated product to give more value to our customers, and our e-commerce launch. Our 29% comparable-store sales increase reflects the strength of the lululemon brand driven by our quality, design, product innovation and unique positioning. We have seen our e-commerce business really take off. I think we’ve seen it slow a little bit because of product availability over the last few weeks and that’s been something that we’ve really been working on and driving the units to that because we don’t want to obviously frustrate our guests there. “
In other words, the crap is FLYING off of the shelves. Now don’t get me wrong, sit down, take a deep breath. Meditate and clear your mind. Now go fill your bank account with cash. Thanks LULU!!
I am HUGE!!!
$$$MR. MARKET$$$
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