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  5. LULU: Hi there, what are your latest thoughts on Lulu, getting even more interesting at current share price of $137? [lululemon athletica inc.]
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Q: Hi there, what are your latest thoughts on Lulu, getting even more interesting at current share price of $137?

New CEO coming, with Nike connection? Maybe something something possible here down the road with NikeLu??

Thanks!
Asked by Hussein on May 04, 2026
5i Research Answer:

Consumer Discretionary has been a tough industry to operate in due to weak consumer spending. LULU is trading at only 11.0x Forward P/E, which is the cheapest valuation ever. However, valuation alone should not be the sole reason to own LULU now, given the deceleration in topline growth. The recent CEO change could be a potential catalyst for the company to recover and reverse the negative momentum, but investors need to wait and see signs of a turnaround. A stock that is low can always go lower if the outlook does not improve (such as NKE). We think LULU is a great brand that has a decent chance for a recovery if management executes. For now, we would wait and see.

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