Joe TerranovaLuLulemon Athletica (US)LULUCOMMENTAug 25, 2023

They have the potential to be a great worldwide retailer. He continues to believe in it. 

The bears said their last quarter was bad and yet shares hit an all-time high. This can run further.

The street talks about a slowing consumer, but Lululemon is a higher-end clothing retailer and is not seeing high-income households traded down yet. These rich consumers are in a better place.

It deserves to join the S&P. Lululemon has embedded intself in society and is the one retailer that keeps delivering consistent growth. Lulu benefits from the new weight-loss drugs, and consumers will be attracted to their clothing.

Ranked #3, slightly losing ground since the spring, but it's #1 among wealthy girls.

Magnificent story. Don't misjudge the infectious quality of this brand and its growth rates. Likes it, but it's pricey. You don't want to own retail forever, but you can still buy at these levels.

Retail tends to be a volatile sector. Successful expanding into menswear. Premium-priced products geared to higher-income households. You could buy on a dip. Unit growth potential not as great as for ATZ. 

They delivered a super quarter with China's revenue up 61% among other great comps. This confirms that China's consumers are coming back and reopening. Lulu didn't mention theft/shrinkage at all, which is notable.

They report Tuesday. Best of breed, but wages could be too hot.

Just last month he signalled a buy, but he just sold it, because he collected a tidy profit. He still likes it. It attracts the luxury consumer, which he remains bullish on, but he took profits. The stock moved up faster than he expected. He will buy it again below $300 for another trade.