May. 31 at 1:19 AM
$LULU Earnings are scheduled for Thurs, and retail (collectively) has been lackluster this quarter. That said-LULU has a very strong balance sheet with more than
$1.8B in Cash/ST, strong margins (EBITDA:24, NI:14%) consistent positive FCF and good (though declining rate) revenue growth. Debt is not an issue here and the Company has strong liquidity to support future growth. K-Shaped economy, inflation, elevated interest rates, historic personal debt levels and default rates - LULU gear are clearly luxury items, and it will be interesting to see how/what the consumer prioritizes. NTM P/E: 10, so the stock has room to move. 25-50% upside possible from this level (IMO) on favorable guidance.
