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0.00327315501457584 2.55715235513499E-05 -0.00524216232803153 -0.00314529739681895 0.000818288753643925 0.00848974581905588 0.0228609420549276 0.00889889019587792
Stock impact report

Lululemon: High Priced Clothes, Overpriced Stock [Seeking Alpha]

lululemon athletica inc. (LULU) 
Last lululemon athletica inc. earnings: 3/26 04:05 pm Check Earnings Report
US:NASDAQ Investor Relations: investor.lululemon.com
Company Research Source: Seeking Alpha
SummaryZero net debt and $1 billion in cash pose an enormous advantage.Lululemon's premium price point could be out of reach for many consumers.If Lululemon excessively discounts it could contribute to margin pressure.Investment ThesisLululemon (NASDAQ:LULUCovid-19With Covid-19 impacting worldwide retail sales, LuluLemon is in a relatively strong position with $1 billion in cash and zero debt, however, it’s liabilities have almost doubled from last year, mainly due to the opening of 51 new stores from Q4 of 2018.(Source:sec.govFurthermore, LuluLemon has a gross profit margin of 58%, one of the highest in the industry, mainly due to low product cost. Nonetheless, with Lululemon now excessively discounting products, that margin is under considerable pressure, especially with the need to be increasingly affordable. Additionally, inventory increased 28% by the end of Q4.If this crisis is tackled by July or August and Lululemon has kept e-commerce spending at a steady growth rate, which in Show less Read more
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