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Stock Market & Financial Investment News

News Breaks
August 8, 2014
10:32 EDTLULUlululemon advances after founder sells shares to PE investor
Shares of yoga apparel maker lululemon (LULU) are climbing after the company's founder agreed to sell half of his stake. However, research firm Jefferies wrote that the company's inappropriate strategy is likely to keep its margins under pressure. WHAT'S NEW: lululemon founder Chip Wilson agreed to sell about half of his stake in the company, representing nearly 14% of its total shares, to private equity firm Advent International, the company reported last night. Wilson will receive about $845M for the shares, and Advent will obtain two seats on luluemon's board. BACKGROUND: Wilson had said before lululemon's annual meeting in June that he would vote against re-electing the company's board because he thought it was too focused on short-term issues. The founder then hired Goldman Sachs as a financial adviser. Last year, after lululemon had to recall some of its pants because they were too shear, Wilson blamed the problem on the shape of some women's bodies. He resigned his position as Chairman of lululemon's board after the statement caused controversy. ANALYST REACTION: In a note to investors today, Jefferies analyst Christian Buss wrote that the sale of Wilson's shares is positive for lululemon, as it will enable the company's board to cease being distracted by bickering and focus on developing and carrying out a strategic plan. However, Buss still believes that the company is incorrectly looking to expand its products to new markets, categories and demographic groups. Such a strategy is inappropriate, given the significant challenges the company has faced with its core products and customers, the analyst contended. Although lululemon's brand is still strong, its margins are likely to remain under pressure as long as it continues its current strategy and its earnings growth is likely to be limited as a result, Buss forecast. He kept a $38 price target and Neutral rating on the stock. PRICE ACTION: In early trading, lululemon climbed 84c, or 2.2%, to $39.87.
News For LULU From The Last 14 Days
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November 20, 2014
12:47 EDTLULUNike opens first women only store in CA, Bloomberg reports
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November 18, 2014
05:55 EDTLULUStocks with implied volatility above IV index mean; GME LULU
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November 17, 2014
06:05 EDTLULUStocks with implied volatility above IV index mean; GME LULU
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November 14, 2014
10:00 EDTLULUOn The Fly: Analyst Downgrade Summary
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09:16 EDTLULUOn The Fly: Pre-market Movers
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09:03 EDTLULUlululemon downgraded at Sterne Agee
As noted earlier, Sterne Agee downgraded lululemon to Neutral from Buy. The firm believes that the company's brand has been damaged, causing many customers to leave, while its competition has become stronger. Target $39.
08:54 EDTLULUlululemon down 2% to $44.14 in pre-market following Sterne Agee downgrade
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06:30 EDTLULUlululemon downgraded to Underperform from Neutral at Sterne Agee
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November 13, 2014
06:04 EDTLULUStocks with implied volatility above IV index mean; GME LULU
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November 12, 2014
13:31 EDTLULULululemon Athletica volatility elevated as shares trend higher
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November 10, 2014
09:46 EDTLULUBB&T remains positive on lululemon following channel checks
BB&T said it remains positive on lululemon following recent channel checks. The firm continues to expect lululemon's results to improve as the company improved product assortment and laps 2013 PR stumbles. BB&T views the hire of Duke Stump as EVP of Community and Brand as a a positive and views the controversy over the donation to the Dalai Lama Center as overblown. Shares are Buy rated with a $50 price target.
07:22 EDTLULUU.S. Retail Softlines sector downgraded to Negative at Barclays
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05:48 EDTLULUU.S. Retail Softlines industry cut to Negative at Barclays
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