Independent Research, US Dominant Players, Investment Talk

Investment Talk

Independent Research, US Dominant Players

Investment Talk is for readers who wish to learn about companies that are potentially outside of their own circle of research, as well as those who are longing to become part of a community of like-minded investors and learn more about investment research. I would describe myself as a long-term investor who typically takes a 3Y to 5Y outlook, before reassessing once that period matures. I follow the adage that one should research, reach a conclusion, and then verify and continue to hold so long as the thesis remains intact. My own investing style is one that seeks to find dominant players within their respective market who have shown signs of monopoly or oligopolistic behaviour, unlikely to be disrupted, in tandem with discovering market disruptors who have a high likelihood of disrupting their respective market. Equally (and weighted accordingly) I seek to discover more nuanced, misunderstood, situations with a shorter time frame.

Equity Bottom-Up

<ul><li>The last time I penned my thoughts about Lululemon was December 2021 during a period when the core business shined and Lulu’s Mirror acquisition began to show the early signs of wilting in the face of declining demand.</li><li>I was grateful that management’s commentary implied they would avoid throwing everything at an attempt to make Mirror, a business which comprised &lt;3% of Lulu’s revenue at the time, work.</li><li>They have since repurposed the business into a two-tiered subscription offering, branded under the parent’s more reputable name.</li></ul>

The last time I penned my thoughts about Lululemon was December 2021 during a period when the core business shined and Lulu’s Mirror acquisition began to show the early signs of wilting in the face of declining demand.I was grateful that management’s commentary implied they would avoid throwing everything at an attempt to make Mirror, a business which comprised &lt;3% of Lulu’s revenue at the time, work.They have since repurposed the business into a two-tiered subscription offering, branded under the parent’s more reputable name.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Throughout the second quarter, Lululemon's momentum remained strong.</li><li>The company’s total revenue accelerated by 29% compared to last year and 28% on a 3-year CAGR basis, helping the company surpass Wall Street expectations.</li><li>It has been benefitting heavily from this launch as hiking has become increasingly popular among visitors since the pandemic.</li></ul>

Throughout the second quarter, Lululemon's momentum remained strong.The company’s total revenue accelerated by 29% compared to last year and 28% on a 3-year CAGR basis, helping the company surpass Wall Street expectations.It has been benefitting heavily from this launch as hiking has become increasingly popular among visitors since the pandemic.

Lululemon Athletica: Expansion In Spain & Other Drivers

Equity Capital Markets

Lululemon Athletica / Equity Capital Markets

<ul><li>Lululemon's momentum from 2021 continued in the initial months of 2022 as well and the year is off to a strong start.</li><li>Revenue increased 32% year over year and 27% on a 3-year CAGR basis in the first quarter, while adjusted earnings per share increased 28% and 26%, respectively.</li><li>The company's product continues to drive demand and the management saw strong traffic growth in both channels, with store and e-commerce traffic up by roughly 40%.</li></ul>

Lululemon's momentum from 2021 continued in the initial months of 2022 as well and the year is off to a strong start.Revenue increased 32% year over year and 27% on a 3-year CAGR basis in the first quarter, while adjusted earnings per share increased 28% and 26%, respectively.The company's product continues to drive demand and the management saw strong traffic growth in both channels, with store and e-commerce traffic up by roughly 40%.

Lululemon Athletica Inc.: Category Expansion & Other Drivers

<ul><li>Lululemon delivered a strong financial result in spite of the ongoing microeconomic challenges.</li><li>Lululemon launched its first re-commerce program named 'Lululemon like New' in two of its test markets.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Lululemon delivered a strong financial result in spite of the ongoing microeconomic challenges.Lululemon launched its first re-commerce program named 'Lululemon like New' in two of its test markets.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Lululemon Athletica: Overview of Business Strategy

<ul><li>Lululemon Athletica's business remained strong in the previous quarter, reflecting the continued growth potential for the company in both the near term and the long term.</li><li>The company also had 96% of its stores open on average during Q3, with 99% open at the end of the quarter.</li><li>Lululemon’s investments over the last several years have enabled the company's acceleration in the digital business, contributing to growth this year on top of last year's outsized performance.</li></ul>

Lululemon Athletica's business remained strong in the previous quarter, reflecting the continued growth potential for the company in both the near term and the long term.The company also had 96% of its stores open on average during Q3, with 99% open at the end of the quarter.Lululemon’s investments over the last several years have enabled the company's acceleration in the digital business, contributing to growth this year on top of last year's outsized performance.

Lululemon Athletica Inc. - Investment Thesis

United States

lululemon athletica Inc. designs and retails athletic clothing.  The Company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness. lululemon serves customers throughout the world.

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Lululemon Athletica (LULU US)

LULU: Revisiting Lululemon

They have since repurposed the business into a two-tiered subscription offering, branded under the parent’s more reputable name.

Investment Talk

Lululemon Athletica: Expansion In Spain & Other Drivers

Throughout the second quarter, Lululemon's momentum remained strong. The company’s total revenue accelerated by 29% compared to last year and 28%...

Baptista Research

Lululemon Athletica Inc.: Category Expansion & Other Drivers

Lululemon's momentum from 2021 continued in the initial months of 2022 as well and the year is off to a strong start. Revenue increased 32% year...

Baptista Research

Lululemon Athletica: Overview of Business Strategy

Lululemon delivered a strong financial result in spite of the ongoing microeconomic challenges. Lululemon launched its first re-commerce program...

Baptista Research

Lululemon Athletica Inc. - Investment Thesis

Lululemon Athletica's business remained strong in the previous quarter, reflecting the continued growth potential for the company in both the near...

Baptista Research

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