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$LULU bulls??
10% of its market cap was erased when gross margin guidance for Q4 was updated ahead of ICR conference. From 50,000 foot view it seems extreme.
Vote and let us know what you think.
Do you think that the price movement of 10% following Q4 gross margin update was extreme?
50%Yes
50%No
12 VotesPoll ended on: 1/11/2023
10%, to me, isn't much to fuss over. Stocks will go up and down 10% many times over a 5 year period. This was simply reactionary, perhaps justifiably so, but it doesn't mean anything to LT investors imo.
If you are like @paulcerro and playing the short/medium term, then it was a great call by him.
@investmenttalk totally agree that 10% is not something to worry about for LT yet it is worth noting. Not playing the Short term but want to see what bulls think about this drop in guidance and price.
Is it an overreaction? Is this something to worry about? Does it provide a better entry price as the thesis remains intact? These are some of the questions that we want to address to the CS community.
@stockopine Granted they have blurry vision into the near term, but was a bit of a goof from management to be so "off" after only a month or two had passed since their last update.
Candidly, I have only flashed through it, got it on the todo to flick through today. Saw the numbers, saw the reaction, saved it for later reading.
Feels extreme, gotta look more into it. I’m a huge fan of Lulu in general, but never built a position. Lot of expensive athleisure brands in the mix now (Olo, Vuori, Fabletics, Athleta) so important for them to continue to broaden their offerings which they’ve been doing for quite some time. It took me a bit to own something OTHER than straight athleisure from them but the quality is just as up to standard as I expected. Their stores around the holidays are a madhouse
@jensen thank you Jensen for the feedback. Do you prefer Lulu to other brands such as Nike, Adidas etc.?
@jensen in terms of product, not in terms of fundamentals.
@stockopine yes as a runner I’ve stuck with nike for shoes but lulu for the clothes last few years
@jensen excellent. Thanks for the comments Jensen.
If I were to be shocked at every 10% daily move I've seen in my life, for the companies I own, I'd have no hair left.
@reasonableyield haha. True!
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