LuLulemon Athletica (US) (LULU)

A great performer this year. They've done a nice job with their product line and hitting on the fashion trends. Selling online has seen massive growth. It trades at 40x earnings (historical earnings are 32x). They've had missteps in the past five years, though. He's waiting for a better entry point. He's also looking at Aritzia in the clothing space.

They're now penetrating a post-leisure world where S, M, L, XL doesn't exist, but the clothing is custom-fit. They're going beyond the usual gym story with a new CEO. Have a a huge, untapped market going forward. It's up 100% back this year. Its mojo is back. (no dividend, Analysts' price target: $154.114)

This has been a real turn-around story. There was great brand recognition, then it fell under its own weight, but management changes has put them back on track. Now the issue is valuation. With a 30-32 times PE, with growth only near 20% it is looking expensive. He would favour Amazon.

They capitalized early on the athletic leisure trend, but can they continue to command consumer interest at the prices they charge? Competitors charge lower prices for similar product--and consumers are fickle.

The is in the $70s, and there are forecasts out to the $90s. Has a strong US following. There were very strong growth numbers reported. It is probably forecasting better growth than it has done in times past.

Valuations is pretty high. He would wait for a better entry point.

This has had a very strange existence where it has been absolutely supreme in the pricing of its garments. Extremely limited in its colours, but very special materials. It has another side which has rarely been seen in public. The company has been volatile, but has a tremendous capacity for expansion globally.

You buy this every time it drops $10. It hasn’t gone up too much. This is an established brand.

In retail and is very much “bricks and mortar” leveraged. He wouldn’t go there right now. Retail is being punished right now. It’s a good company with amazing brand power. They had a big miss and had reset expectations after the last quarter. They are reinvesting in e-commerce, but are way behind.

It is at the 52 week lows and has terrible price momentum. Don’t buy until this resolves itself. Don’t catch a falling knife.

(A Top Pick Sept 15/15. Up 28.61%.) This has had a history of being the finest in the line of fit ware. It has an unusual model, in that it hasn’t actually flooded the world with stores. He thinks this company is unassailable. Sold his holdings in order to move into something else.

Got very overvalued a while ago, and has dropped right back down to its intrinsic value (FMV). Since then it has had a pretty nice bounce and is about 25% overvalued. If you own, he would be out of it since it has had a nice run.

It has plenty of upside. All retail took a hit in the summer. Athletic fashion competition is huge. There is room for multiple players. There is plenty of room for them to expand. She prefers this to UA-N and is watching Nike closely.

Had a really tough go with their stretch pants, management infighting, etc. Have done really well adapting to those changes, but this is a very competitive environment. Also fads are involved, and if you don’t get one right, that could be a pretty bad event. He is more on the staples side of consumer spending. Trading at 37X forward earnings, so it is expensive.