New User:

-or-
Username:
Password:
Forgot your password?

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
Sign up for a free trial to see the rest of the stories you've been missing.
June 26, 2015
10:23 EDTLULUAnalyst warns lululemon seeing increased competition in Canada
lululemon's (LULU) Canadian stores will probably be under pressure as new competitors have entered the company's core yoga apparel market there, research firm Macquarie warned in a note to investors earlier today. The firm highlighted one such competitor, Lole's Learning. WHAT'S NEW: Canada based Lole’s Learning and lululemon have similar products, similar prices, similar marketing events and similar store locations, Macquarie analyst Laurent Vasilescu reported. However, Lole's prices are "a tad more competitive," the analyst stated. Lole's started out as a wholesaler, but now has about 2,000 retail locations, many of which are within walking distance of lululemon stores, the analyst stated. Lole's has grown at a compound annual growth rate of 29% over the last five years, according to Vasilescu, who kept a $42 price target and Underperform rating on lululemon. WHAT'S NOTABLE: On June 9, lululemon reported slightly stronger than expected first quarter results and said that its U.S. stores were posting strong same-store sales trends in the initial weeks of Q2, while its Canadian stores were seeing positive Q2 comp trends. PRICE ACTION: In early trading, lululemon rose 1% to $68.29.
June 25, 2015
10:19 EDTLULUlululemon recalling women's tops with elastic draw cords due to injury hazard
Subscribe for More Information
June 22, 2015
06:02 EDTLULUStocks with implied volatility below IV index mean; QIHU LULU
Subscribe for More Information

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use