Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $32.50 price target for Guess?, after the company reported mixed 3QFY24 (October) results, with EBITDA handily beating Street consensus, but EPS a miss, driven by a higher than expected tax rate and slightly weaker top line results, as Europe saw slowing traffic and the domestic stores remain negative.</li><li>Jeans), the recapture of the company's license for domestic outerwear and a normalization of the expense base.</li><li>As such, we are reiterating our Buy rating and $32.50 price target on GES, which now translates to 6.5X our new FY25 EBITDA.</li></ul>

We are reiterating our Buy rating and $32.50 price target for Guess?, after the company reported mixed 3QFY24 (October) results, with EBITDA handily beating Street consensus, but EPS a miss, driven by a higher than expected tax rate and slightly weaker top line results, as Europe saw slowing traffic and the domestic stores remain negative.Jeans), the recapture of the company's license for domestic outerwear and a normalization of the expense base.As such, we are reiterating our Buy rating and $32.50 price target on GES, which now translates to 6.5X our new FY25 EBITDA.

GES: 3Q Review: Guess Goes Conservative for 4Q; Reiterate Buy, $32.50 Pt

Research Firm with a Qualitative Overlay, Pearl Gray Equity and Research

Pearl Gray Equity and Research

Research Firm with a Qualitative Overlay

Quantitative fund & research firm with a qualitative overlay. 

Our coverage: General U.S. with a skew towards the primary sector. 

Methods: Smart Beta/Factor Pricing, Neural Networks, Street Gossip, and Common Sense.

<ul>
<li>The company's international sales growth is somewhat of a hidden asset, as the arena is underserved.</li>
<li>Lululemon's regional brand exposure is expanding with new store openings.</li>
<li>The stock is theoretically undervalued, which is why the stock is undervalued.</li>
</ul>


The company's international sales growth is somewhat of a hidden asset, as the arena is underserved.
Lululemon's regional brand exposure is expanding with new store openings.
The stock is theoretically undervalued, which is why the stock is undervalued.


Lululemon: Underestimated Is An Understatement

<ul>
<li>Lululemon Athletica Inc.'s calendar year margin compression is due to variable costs that will probably adjust lower this year.</li>
<li>Many analysts mistake'monetized costs' such as excess amortization for cash costs.</li>
<li>Lululemon Athletica Inc. (<span class="ticker-hover-wrapper">NASDAQ:LULU</span>) stock has surged by nearly 2000% since its initial public offering in 2007.</li>
</ul>


Lululemon Athletica Inc.'s calendar year margin compression is due to variable costs that will probably adjust lower this year.
Many analysts mistake'monetized costs' such as excess amortization for cash costs.
Lululemon Athletica Inc. (NASDAQ:LULU) stock has surged by nearly 2000% since its initial public offering in 2007.


Lululemon: Ignore The Margin Compression Talk

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.

<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.

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)

GES: 3Q Review: Guess Goes Conservative for 4Q; Reiterate Buy, $32.50 Pt

We are reiterating our Buy rating and $32.50 price target for Guess?, after the company reported mixed 3QFY24 (October) results, with EBITDA...

Small Cap Consumer Research

Lululemon: Underestimated Is An Understatement

The company's international sales growth is somewhat of a hidden asset, as the arena is underserved. Lululemon's regional brand exposure is...

Pearl Gray Equity and Research

Lululemon: Ignore The Margin Compression Talk

Lululemon Athletica Inc.'s calendar year margin compression is due to variable costs that will probably adjust lower this year.

Pearl Gray Equity and Research

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

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