r/stockmarket
LULU now has a lower P/E than WEN
LULU's P/E matches WEN's at 8.65 amid analyst downgrades and PT cuts to $115, signaling a shift from growth to mature legacy retail status.
- Analysts significantly lowered price targets from ~$170 to ~$115, eliminating previous upside potential.
- The stock is re-rating as a mature legacy retailer with a low P/E of 8.65, comparable to slow-growth chains like Wendy's.
- Internal governance distractions, including a proxy battle and CEO transition, add uncertainty despite the standstill agreement.
LULU P/E currently is 8.65 while WEN P/E is 8.65. Also, a ton of analysts downgraded their ratings for LULU following their earnings results on Thursday and they also lowered their price targets.
Prior to earnings most ‘respectable’ analysts had a PT of roughly $170 and now their PT is roughly $115. Prior to earnings the stock traded for $125 and it now trades for $115.
In other words, it used to have like 50 % upside and now has 0 % upside.
The company just moved past a heavy proxy battle with founder Chip Wilson (who was granted two board seats in a standstill agreement) alongside an upcoming CEO transition.
It's essentially trading like a mature, legacy retail stock rather than a disruptive growth machine.
Gym wear is heated competition right now with new brands popping up weekly.
I am not the intended market for any of the trendy athleisure brands, as everything I wear to the gym comes from Costco, but there are so many clones and near-clones out there that I don’t see Lululemon can make it selling their shit for what they do.
Costcos athleisure is actually really good. I have to pairs that I actually prefer over my Vuori/Lulu pants I have .
Lulu used to offer something others don't. Durable clothes with a lifetime guarantee. I paid extra for that and they rug pulled me.
I think I'm probably just 1 of 99% of their former customers that won't shop there anymore because of it. Rug pulling their guarantee means they're skimping on quality and their clothes aren't durable anymore.
You know it’s bad when it’s one of the few shops on a posh london street my wife doesn’t want to go in anymore.
They are the modern gap. Maybe needs a few years for people to see it in a different light.
Yeah, they just completely trashed their own brand for a quick buck. I'm a guy and I loved their menswear. I'd buy it, paying extra, thinking I was buying something that would last maybe not a lifetime, but 10 years. When I finally had some pants with a small tear on a pocket they informed me the lifetime guarantee was canceled. Ok, fine, but I'll never trust them again. The value I see immediately dropped by approximately 10X, because I know instead of a 10 year shirt it's a 1 season shirt.
What the analysts say mean absolutely nothing to any serious investor.
While I agree they do tend to have some effect on the stock price in the short term.
IMO, Lulu seriously diminished their brand value by getting rid of their lifetime guarantee. I used to shop there because their clothes were durable and they stood behind them. When I finally did bring something in for a small tear they informed me that they had cancelled the lifetime guarantee. Bait and switch. The quality and durability has plummeted.
So, Lulu no longer has any moats. It's not a status symbol and it's not a bastion of quality. So, I'll just buy whatever is the best value.
Anyone who invests in LULU rn is regarded.
No stock market analyst when it comes to fashion is gonna usurp the opinion of a woman. My gf and her girl friends have rotated out of LULU a long time ago. That shit is dead like Nike
Source?
If he had a source then he would've posted it. The chap is looking for exit liquidity lol
I checked EDGAR and there are no form 4’s showing she has ever bought any Lulu stock. Idk what his motivation is but that’s a flat out lie.
Comp sales showed a 6% decline on a constant dollar basis in the Americas. Consumer confidence and spending is challenged with higher prices for gasoline and utilities. Inflation and long term yields are trending up. Consumer discretionary companies are out of favor and this is the poster child for that sector. I don’t see any moat here.
Their having issues in North America based on competition.