Below is Validea’s Daily Guru Fundamental Report for LULULEMON ATHLETICA INC (LULU). Of the 12 guru strategies we follow, LULU ranks best when we use our patient-investor model, which is based on Warren Buffett’s published strategy. This strategy seeks companies with long-term, predictable profitability and low levels of debt that are trading at reasonable valuations.
LULULEMON ATHLETICA INC (LULU) is a large cap growth stock active in the Retail (Apparel) industry. The rating that this strategy uses is 99% based on the company’s underlying fundamentals and the stock’s valuation. A score of 80% or greater typically indicates that the strategy has some interest in the stock, and a score above 90% typically indicates strong interest.
Company Description: lululemon Athletica Inc. is a designer, distributor and retailer of lifestyle-inspired athletic apparel and accessories. The Company’s segments include company-operated stores and direct-to-consumer sales. The apparel range includes items such as trousers, shorts, tops and jackets designed for a healthy lifestyle, including sporting activities such as yoga, running, working out and other sweaty activities. It also offers fitness-related accessories. The stores operated by the Company include approximately 600 stores in 17 countries. The retail stores are mainly located at street locations, lifestyle centers and in malls. The direct-to-consumer segment includes the e-commerce website www.lululemon.com, other country- and region-specific websites, and mobile applications, including mobile applications on in-store devices. The Company also conducts business through MIRROR, which offers at-home fitness through an exercise platform; Operation of branches and temporary locations.
The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
| PREDICABILITY OF PROFITS: | HAPPEN |
| DEBT SERVICE: | HAPPEN |
| RETURN ON EQUITY: | HAPPEN |
| RETURN ON OVERALL CAPITAL: | HAPPEN |
| FREE CASH FLOW: | HAPPEN |
| USE OF RESTRICTED PROFIT: | HAPPEN |
| SHARE BUYBACK: | NEUTRAL |
| INITIAL RETURN RATE: | HAPPEN |
| EXPECTED RETURN: | HAPPEN |
Detailed Analysis of LULULEMON ATHLETICA INC
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, becoming one of the richest men in the world in the process. (Forbes puts his net worth at $37 billion.) Despite his net worth, Buffett is known for living a modest lifestyle by billionaire standards. His primary residence remains the gray stucco house in Nebraska he bought nearly 50 years ago for $31,500, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures — a Cherry Coke, a good burger, and a good book are all near the top of the list – have been well documented.
About Validea: Validea is an investment research service that tracks the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over time, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. You can find more information about Validea here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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