Q: Good morning,
What are your thoughts on Lululemon these days? After this year's move lower, tax-loss season (almost) behind us now, and news of the CEO announcing his departure yesterday, I am thinking of a small ADD. But only if 5i tells me it is OK to do so :)
Thanks as always.
What are your thoughts on Lululemon these days? After this year's move lower, tax-loss season (almost) behind us now, and news of the CEO announcing his departure yesterday, I am thinking of a small ADD. But only if 5i tells me it is OK to do so :)
Thanks as always.
5i Research Answer:
There has been a quick sentiment shift, and with a new CEO coming (at some point) we think LULU has a chance to 'reset'. Under the right conditions the stock could recover much of its lost ground. We would not go too big here as there is still work to be done, but we think the potential for gains in the stock over the next 18 months has improved.