Research Firm with a Qualitative Overlay, Pearl Gray Equity and Research

Pearl Gray Equity and Research

Research Firm with a Qualitative Overlay

Quantitative fund & research firm with a qualitative overlay. 

Our coverage: General U.S. with a skew towards the primary sector. 

Methods: Smart Beta/Factor Pricing, Neural Networks, Street Gossip, and Common Sense.

Equity Bottom-Up

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<li>Lululemon Athletica Inc.'s calendar year margin compression is due to variable costs that will probably adjust lower this year.</li>
<li>Many analysts mistake'monetized costs' such as excess amortization for cash costs.</li>
<li>Lululemon Athletica Inc. (<span class="ticker-hover-wrapper">NASDAQ:LULU</span>) stock has surged by nearly 2000% since its initial public offering in 2007.</li>
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Lululemon Athletica Inc.'s calendar year margin compression is due to variable costs that will probably adjust lower this year.
Many analysts mistake'monetized costs' such as excess amortization for cash costs.
Lululemon Athletica Inc. (NASDAQ:LULU) stock has surged by nearly 2000% since its initial public offering in 2007.


Lululemon: Ignore The Margin Compression Talk

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Lululemon Athletica / Equity Capital Markets

<ul><li>Lululemon’s results for the last quarter continued to be strong and the company produced an all-around beat despite the fact that the external environment remains challenging.</li><li>In terms of traffic driven and revenue, Black Friday was among the biggest days for the company.</li><li>The revenue growth of Lululemon remained balanced and strong across various drivers, and the company’s market share gains continued.</li></ul>

Lululemon’s results for the last quarter continued to be strong and the company produced an all-around beat despite the fact that the external environment remains challenging.In terms of traffic driven and revenue, Black Friday was among the biggest days for the company.The revenue growth of Lululemon remained balanced and strong across various drivers, and the company’s market share gains continued.

Independent Research, US Dominant Players, Investment Talk

Investment Talk

Independent Research, US Dominant Players

Investment Talk is for readers who wish to learn about companies that are potentially outside of their own circle of research, as well as those who are longing to become part of a community of like-minded investors and learn more about investment research. I would describe myself as a long-term investor who typically takes a 3Y to 5Y outlook, before reassessing once that period matures. I follow the adage that one should research, reach a conclusion, and then verify and continue to hold so long as the thesis remains intact. My own investing style is one that seeks to find dominant players within their respective market who have shown signs of monopoly or oligopolistic behaviour, unlikely to be disrupted, in tandem with discovering market disruptors who have a high likelihood of disrupting their respective market. Equally (and weighted accordingly) I seek to discover more nuanced, misunderstood, situations with a shorter time frame.

<ul><li>The last time I penned my thoughts about Lululemon was December 2021 during a period when the core business shined and Lulu’s Mirror acquisition began to show the early signs of wilting in the face of declining demand.</li><li>I was grateful that management’s commentary implied they would avoid throwing everything at an attempt to make Mirror, a business which comprised &lt;3% of Lulu’s revenue at the time, work.</li><li>They have since repurposed the business into a two-tiered subscription offering, branded under the parent’s more reputable name.</li></ul>

The last time I penned my thoughts about Lululemon was December 2021 during a period when the core business shined and Lulu’s Mirror acquisition began to show the early signs of wilting in the face of declining demand.I was grateful that management’s commentary implied they would avoid throwing everything at an attempt to make Mirror, a business which comprised &lt;3% of Lulu’s revenue at the time, work.They have since repurposed the business into a two-tiered subscription offering, branded under the parent’s more reputable name.

<ul><li>Throughout the second quarter, Lululemon's momentum remained strong.</li><li>The company’s total revenue accelerated by 29% compared to last year and 28% on a 3-year CAGR basis, helping the company surpass Wall Street expectations.</li><li>It has been benefitting heavily from this launch as hiking has become increasingly popular among visitors since the pandemic.</li></ul>

Throughout the second quarter, Lululemon's momentum remained strong.The company’s total revenue accelerated by 29% compared to last year and 28% on a 3-year CAGR basis, helping the company surpass Wall Street expectations.It has been benefitting heavily from this launch as hiking has become increasingly popular among visitors since the pandemic.

Lululemon Athletica: Expansion In Spain & Other Drivers

<ul><li>Lululemon's momentum from 2021 continued in the initial months of 2022 as well and the year is off to a strong start.</li><li>Revenue increased 32% year over year and 27% on a 3-year CAGR basis in the first quarter, while adjusted earnings per share increased 28% and 26%, respectively.</li><li>The company's product continues to drive demand and the management saw strong traffic growth in both channels, with store and e-commerce traffic up by roughly 40%.</li></ul>

Lululemon's momentum from 2021 continued in the initial months of 2022 as well and the year is off to a strong start.Revenue increased 32% year over year and 27% on a 3-year CAGR basis in the first quarter, while adjusted earnings per share increased 28% and 26%, respectively.The company's product continues to drive demand and the management saw strong traffic growth in both channels, with store and e-commerce traffic up by roughly 40%.

Lululemon Athletica Inc.: Category Expansion & Other Drivers

United States

lululemon athletica Inc. designs and retails athletic clothing.  The Company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness. lululemon serves customers throughout the world.

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Lululemon Athletica (LULU US)

Lululemon: Ignore The Margin Compression Talk

Lululemon Athletica Inc.'s calendar year margin compression is due to variable costs that will probably adjust lower this year.

Pearl Gray Equity and Research

Lululemon Athletica: Major Drivers

Lululemon’s results for the last quarter continued to be strong and the company produced an all-around beat despite the fact that the external...

Baptista Research

LULU: Revisiting Lululemon

They have since repurposed the business into a two-tiered subscription offering, branded under the parent’s more reputable name.

Investment Talk

Lululemon Athletica: Expansion In Spain & Other Drivers

Throughout the second quarter, Lululemon's momentum remained strong. The company’s total revenue accelerated by 29% compared to last year and 28%...

Baptista Research

Lululemon Athletica Inc.: Category Expansion & Other Drivers

Lululemon's momentum from 2021 continued in the initial months of 2022 as well and the year is off to a strong start. Revenue increased 32% year...

Baptista Research

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