This video was super valuable to me. There were moments where it would have been awesome to hear your thought process as you were analyzing the report, but I still really appreciate you sharing videos like this to help your readers learn to evaluate a stock!
That's a great question. It's tough to be a good performer in the fashion industry. Fashion trends come up and die really fast. I think that's a big risk for LULU
Metrics aside, fashionable brands like LuLu Lemon can come and go quickly. They may lose popularity as consumer tastes change. Personally, I wouldn't invest in them; I see them as passé. The brand's core demographic-hipster, upper-middle-class, white consumers-might soon move on to the next trendy item that hits the market.
That's what I thought as well. Fashion is a really tough business. And also, valuation doesn't seem good enough to warrant a buy. The margin of safety is not wide enough for me...
The brand actually captures a wider demographic than you think. it’s just that for some, it’s an everyday piece of clothing, and others more aspirational. Best part is that it’s a lot more affordable than your high fashion brand which means the aspirational buyer (middle income America) is more likely to purchase and likely also more frequent a purchase than other aspirational clothing items. I believe their revenue, is pretty much a function of societies view on health/ being fit and looking good/ beauty standards. Of which I think is heavily reinforced and by social media. Kid/ Young adults seem to take fitness a lot more seriously, I think because it’s popular to be fit and healthy. This will likely follow them into adulthood. Active and fit parents also tend to in-still these routines to their kids who then have a high chance of being active fit adults. The other bigger brand are too fragmented and not focused enough as they dabble in every sport As long as their margins stay strong, I’m confident that macro tailwinds will continue promote LULUs growth.
This video was super valuable to me. There were moments where it would have been awesome to hear your thought process as you were analyzing the report, but I still really appreciate you sharing videos like this to help your readers learn to evaluate a stock!
Thanks for tuning in! Was just experimenting with these kinds of videos. Appreciate the feedback!
Thanks for sharing how you research a company!!!
Thank you for watching!
love the research recorded video, would have appreciated it more with sound though, get to hear your thoughts as you read up on it
Thanks for the feedback :)
Great stock performer in the last decade+ and looks interesting, but can it continue for the next decade+ ?
That's a great question. It's tough to be a good performer in the fashion industry. Fashion trends come up and die really fast. I think that's a big risk for LULU
The fashion industry can be dicey, so agree it's on the risky side. Great channel Riyado!
Are you going to show your portfolio?
Maybe I will one day :)
You like $mndy or no ?
Haven’t done any research on the company. Anything special about it?
Metrics aside, fashionable brands like LuLu Lemon can come and go quickly. They may lose popularity as consumer tastes change. Personally, I wouldn't invest in them; I see them as passé. The brand's core demographic-hipster, upper-middle-class, white consumers-might soon move on to the next trendy item that hits the market.
That's what I thought as well. Fashion is a really tough business. And also, valuation doesn't seem good enough to warrant a buy. The margin of safety is not wide enough for me...
The brand actually captures a wider demographic than you think. it’s just that for some, it’s an everyday piece of clothing, and others more aspirational.
Best part is that it’s a lot more affordable than your high fashion brand which means the aspirational buyer (middle income America) is more likely to purchase and likely also more frequent a purchase than other aspirational clothing items.
I believe their revenue, is pretty much a function of societies view on health/ being fit and looking good/ beauty standards. Of which I think is heavily reinforced and by social media.
Kid/ Young adults seem to take fitness a lot more seriously, I think because it’s popular to be fit and healthy. This will likely follow them into adulthood. Active and fit parents also tend to in-still these routines to their kids who then have a high chance of being active fit adults.
The other bigger brand are too fragmented and not focused enough as they dabble in every sport
As long as their margins stay strong, I’m confident that macro tailwinds will continue promote LULUs growth.
I probably just go with Nike here
Nike definitely has stronger moats…