May. 12 at 2:05 AM
$LULU — 5 reasons the bull case is hard to ignore
1. ~12x P/E — 74% below its 10-year average of 41x. Priced like a dying retailer, not a premium compounder.
2. +33% international revenue growth YoY — China alone up 46%. The global story is nowhere near saturated.
3. 34% return on equity — sustained since 2010. Elite for any retailer, let alone one trading at 12x earnings.
4.
$1.6B buyback capacity — shares already down ~4% YoY. Management is buying aggressively at these levels.
5. 58% gross margin — luxury-brand territory. Nike is 44%. This is not a typical athletic wear business.
