The $18 billion market cap “athleisure” wear company Lululemon reported earnings and stunned Wall Street on 8/30/18. Posting incredible growth numbers, and still having room to grow is a key highlight of the company, evolving each and every quarter.

LULU earnings breakout


ALSO READ: New Age Beverage Corporation is the next Helios (HMNY)


Looking over Lululemon and the Q2 earnings announcement, we find the following key points:

  • GAAP Earnings per share of $0.71, beating estimates by $0.22
  • Revenue of $723.5 million, beating estimates by a crazy high $388.35 million
  • Revenue growth was +24.5% year over year
  • Comparable sales up 20%
  • Comparable store sales jumped 10% (even with the majority of Lululemon stores inside of malls)
  • Direct to consumer net revenues jumped 48% (and if you take out the effects of an online warehouse sale, it actually jumped 66%)
  • Gross margin rose to 54.8%
  • Gross profit jumped 33% to $396.2 million
  • Full year revenues are expected to be $3.18 billion to $3.23 billion

Lululemon direct to consumers is key

One of the more interested highlights is that a form fitting clothing brand is showing excellent growth online and direct to consumer. (It’s worth noting D2C can include multi-channel sales like web / online / social media.)

Growth in Lululemons direct sales means that customers are being driven to a store to try the product on, and making a purchase / going online, and that offline initiatives are having a positive effect on online sales growth. Also, it could be a great indication that consumers are incredibly happy with the product, and are reordering it without the hassle of going to the store. If that doesn’t scream brand loyalty, then I don’t know what does.

Investing with yoga pants into Lululemon

*** SPECIAL ALERT -- May 10, 2020 -- Motley Fool Stock Picks On FIRE! ****

The recent Motley Fool stocks picks, even with this COVID crisis, are STILL performing well and beating the SP500! Here are some of their most recent picks and their performance:
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 90%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 16%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 17%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 77% compared to the SP500 -12% so it is ahead of the market by 89%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 4%
  • Netflix (NFLX) picked November 21, 2019 and it is up 37%
  • Trade Desk (TTD) picked November 11, 2019 and up 50%
  • Zoom Video originally picked Oct 3 and it is up 87%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 20%
  • Zoom was also picked October 3, 2019 and it is up 95% since then.
The average stock they've recommended is up a life-changing 346% - more than 4X the return of the S&P 500 ! Now, no one can guarantee that every pick in Stock Advisor will have the same mind-blowing returns as Netflix and Disney. But you sure don't want to risk missing out.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

Hurry! Order now so you will get their next stock pick! Here is the expected schedule of release dates for their stock picks...:

  • June 4 - Tom's New Recommendation
  • June 11 - Tom's New Best Buys Now
  • June 18 - David's New Recommendation
  • June 25 - David New Best Buys Now

CLICK HERE to get The Motley Fool's Stock Picks for just $99 per Year! 

While the company is more than yoga pants, they still provide a decent opportunity for investments. Looking at trendline support, $LULU has continued to increase in price, and with new earnings, and explosive growth, we could see even faster growth. Options would be a great way to play this growth, and long call options would be the way to go. A 15 MAR 2019 $175 CALL would cost you $8.55 a share to get into, for a contract price of $855. If the stock continues to climb, and hits $183 on 9 FEB 2019 (or above), total net return would be $349, a 40.8% return on your money when all said and done.


INVESTING TIP #27-- HOW TO GET FREE STOCK!

Get Up To $1,000 in Free Stock with Robinhood--the Commission-Free Brokerage!

Open a new account and receive one free stock valued at up to $500! Then, once your account is open, get more free stocks (value from $5 to $500) for each friend, family, person you refer! USE THIS LINK to get started with Robinhood!

LEAVE A REPLY