Added to YB: 2026-09-10
Pitch date: 2026-09-08
LULU [neutral]
lululemon athletica inc.
-2.14%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. Sign up for the newsletter.
Company Info
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally.
Market Cap
$11.1B
Pitch Price
$101.90
Price Target
N/A
Dividend
N/A
EV/EBITDA
3.93
P/E
8.24
EV/Sales
1.07
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
Michael Burry Is Betting Big on Lululemon. Should You?
LULU (hold): Lululemon is a hold around $100: roughly 10x depressed FY2026 earnings and a debt-free balance sheet provide support, but Americas comps are down 12%, traffic, conversion, store productivity and underlying margins are deteriorating, and guidance has been cut twice. The brand remains valuable, yet its preference-based moat is weakening; the key question is whether new leadership can restore full-price sales and margins without sacrificing historically high returns on capital.
Read full article (30 min)