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Turning Lululemon into Lemonade

 Apr 02, 2008 09:06 PM UTC
Symbol Sentiment Start Return Closed
LULU Positive 04/02/08 -15.19% --

4/2 - "Upscale fitness apparel retailer lululemon athletica (Nasdaq: LULU) is at peace with investors after coming through with better than expected fiscal-fourth-quarter results...Net revenue more than doubled to $105.1 million during the holiday quarter. Earnings more than quadrupled to $0.21 a share. Analysts expected the Vancouver-based chain to earn just $0.19 a share on $92.7 million in net revenue."

"No, lululemon isn't cheap. Now fetching roughly 45 times this year's profit guidance, mallrats will find cheaper valuations in less specialized concepts...Then again, you don't see any of those chains growing so quickly, or churning out such sky-high comps, at a time when shoppers are clinging to their pennies.

lululemon is onto something special, and hopping onto a company's growth curve early is usually worth a pretty premium."

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4/2 - "We are reducing our FY2008 estimate by $0.03 to $0.72 to account for weaker back half comps (same-store sales) as we expect the majority of the beneficial impact of currency on comps to begin to anniversary in 3Q. Management laid out a very strong strategic plan and an achievable outlook, in our view. We remain neutral, as we think the 2009 P/E of 33x is justified by the significant grow...


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Eric   N/A     1 point   commented 598 days ago reply

Lululemon's fiscal Q4 earnings release:

http://biz.yahoo.com/bw/080402/20080402005632.html

J.C. Penney's fiscal Q1 earnings warning:

http://biz.yahoo.com/bw/080328/20080328005123.html

DSW's fiscal Q4 earnings release:

http://biz.yahoo.com/prnews/080327/clth106.html

J. Crew's Q4 earnings release and conference call transcript:

http://biz.yahoo.com/prnews/080311/nytu124.html

http://seekingalpha.com/article/68143-j-crew-group-f4q07-qtr-end-2-2-08-earnings-call-transcript

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