What Do Lululemon Think Of The World'S Top Third Sportswear Brands And Media?

On Friday, U.S. stocks closed lemonade shares down 2.95%, to $255.90, with a turnover of $409 million. By the end of the press release, Lulu lemon fell 0.15% after the dish.

Lulu lemon plans to announce its next quarterly earnings announcement on Wednesday, March 25, 2020. Lulu lemon updated its fourth quarter earnings guide on Monday, January 13th. The company provided $2.22 to $2.25 in earnings per share (EPS) guidance during this period, while Thomsen Reuters's consensus earnings per share were estimated at $2.15. The company issued a revenue guidance of $137 billion 138 million, while the market generally expected to be $1 billion 350 million.

On the evening of February 19th, lululemon announced the business hours of the stores through the official WeChat public number, announcing that many stores and stores in ten cities such as Beijing, Shanghai, Nanjing, Xiamen, Suzhou resumed business, of which Beijing's 5 stores were all restored to business. The Lulu lemon is still not worth holding on, so let's take a look at the current views of mainstream institutions and media on Lulu lemon.

1, what does the institution look at?

Cowen&Co.: give Lulu lemon "win over the market" rating, target price up to 250 U.S. dollars.

Lululemon, a sports brand in recent years, is starting to look more and more like Nike. The company raised its target price to $250 on Tuesday, Cowen&Co., a US analyst.

The company said Nike's valuation provided a map for the future of Lulu lemon. When Nike's (rising) multiple was applied to the financial indicators and growth opportunities of Lulu lemon, we would find that the latter had a road leading to the $40 billion valuation, the $more than 300 share price and the annual free cash flow of $1 billion.

"Assuming Lulu lemon can maintain Nike free cash flow multiplier, we think it will have a road to the market value of US $40 billion. We think Lulu lemons are most similar to Nike in terms of growth, persistence and return on capital. "The Cowen&Co. analyst, led by John Konan (John Kernan), wrote in a report to customers on Tuesday.

Cowen&Co. now gives Lulu lemons a "win over the market" rating, which represents an increase of about 11% of the current transaction price according to the target stock price of US $250.

Cowen&Co. said that the growing Mens and international departments will boost sales, while noting that its consumers are "highly loyal to brand owners". In addition, Lulu lemon's new Lab inspired by street style should also attract new customers, and the new footwear series represents more opportunities for the brand expansion.

　　 Piper Jaffray: for the first time, IBD 50 shares were overweight, with a target price of US $227.

Piper Jaffray analyst Erinn Murphy for the first time gave IBD 50 stock overweight rating with a target price of US $227. She believes that IBD 50 can surpass its elasticity and will successfully enter the new market.

She said in a research report: "we believe that the brand is a share growth person and has more and more opportunities in the male and international markets. "Although the share price is close to the highest level in 52 weeks, we think that men's performance in China is better than expected (today there are 28 stores and a total of 460 stores). The success of the recently launched self health care service and the adoption of the loyalty plan may be the catalyst for the upsurge. "

　　 US stock research group: eye-catching, Lululemon enters the footwear market

Last year, Lululemon's share price performance was very eye-catching. Its market value exceeded 30 billion US dollars. Although there was a big gap between Nike and Adidas, it has become the third place in the field of sports shoes and clothing. The share price can get such a good performance, it is inseparable from the performance of Lululemon's earnings.

Expand more product lines and tap more new incremental space. For lululemon, its product line is still not as rich as Nike and Adidas. In the future, further expansion of more product lines will help it gain more revenue growth from users. In April of 2019, Calvin McDonald, chief executive of Lululemon (Lulu lemon), announced the latest five year growth plan and said that Lululemon will enter the footwear market. How to establish brand characteristics on the new product line is also the focus of Lululemon's consideration in the future.

At present, the market value of Lululemon is still a great distance from Nike and Adidas. There is a long way to go, but this is the highlight of Lululemon in terms of revenue growth. How to maintain a steady growth rate in the future is still a necessary chip to attract investors' trust.

　　 Wells Fargo: raise Lulu lemon rating to "win the market", target price to $200.

Wells Fargo raised its Lululemon rating from "flat with the market" to "winning the market" and raised its target price from $144 to $200, up by 27%. Analyst IkeBoruchow said that with the improvement of supply chain and the expansion of online channels, the company will be able to outperform the big market in the short and medium term.

Global expansion, online business and male products have become the main contributors to the current Lululemon growth. In addition, CalvinMcDonald8, the global cosmetics retailer's former chief executive, was appointed as the new global CEO on 20 May, which also gave the market high hopes. According to a report by UBS, based on the anticipation of Lululemon market share growth and profit increase, its four major strategies, including innovative product line, strengthening North American store business, expanding online business and expanding international business, will keep the company in good growth and expect profit growth in five years.

Zacks: to give Lulu lemon "strong recommendation buy" rating, with the development of the electricity market at home and abroad, it is expected that the company will have more room for expansion. Zacks, a US financial media, believes that the company's strategy of achieving $4 billion in revenue and doubling its revenue in 2020 is being implemented in an orderly way, and has also given the company the highest rating on "strong recommendation buy".

2, what does the media think?

Goblin capital: how can Lululemon become outstanding in niche industries?

Unlike traditional sporting goods companies, which rely mainly on advertising and celebrity spokesmen for brand marketing, Lululemon hardly ever advertise. It is the originator of social marketing.

To a large extent, the growth of Lululemon depends on the binding of Yoga Culture and yoga community. It creates a common memory with consumers through various social activities word-of-mouth, which deeply binds the consumer mentality and improves consumer loyalty, and consumer loyalty is the basis of brand overpricing.

Positioning accuracy + unique marketing + strong innovative design capability is the three major factor that lululemon can achieve success. The pricing power of the market is the core competitiveness derived from the subsequent generation, which is highly similar to Moutai's pricing power in the liquor industry.

The main risk of Lulu also comes from its product positioning. In general, it is "too narrow", and it is embodied in four aspects: A, basic yoga category, B, mostly female customers, and male customers are difficult to develop, C, positioning young white collar group, D, super high price. Lulu management is also aware of it. In addition to CD's need to temporarily ignore the positioning of high-end products, AB has carried out some countermeasures.

Lululemon is one of the most successful sporting goods companies in the world in the past ten years. Thanks to its early niche market positioning and the vigorous development of the yoga industry, Lululemon has taken the lead in the field of yoga, and has built a yoga product empire with the excellent products of the two elements of "Sports" and "fashion" and the world's leading social marketing capabilities. As the leading sheep of the industry, its product quality and brand power are no longer right in the North American market, and are rapidly moving towards emerging markets such as Eurasia. The internationalization process is in full swing. The expansion of male customer groups is remarkable, and they are also trying other sports products. Financial data and business data are among the best in the whole industry. With Lululemon's experience in management, design and marketing in the Yoga field, and with the wide development space of Yoga market, Lululemon is also promising.

　　 Sports big business: signing the male spokesperson and marching into the sports shoes market, Lulu lemon, which has an annual revenue of US $3 billion 300 million, is aggressive.

As some investors are concerned, although Lulu lemon has abundant capital and strength, at present, no matter professional sports track or sports and leisure market, it has been saturated to some extent, even a "Blood Sea". It is not easy to drive a "Lulu" lemon to overtake the curve.

In terms of brand awareness, Lulu lemon still has a lot of homework to fill. According to Bernstein's data, Lulu lemon's brand popularity is still lower than its main competitors. About half of the US respondents did not know Lulu lemon in the 1000 person survey conducted by the company. For those whose families earn more than 75000 dollars, the result is about 1/4.

In terms of channels, Lulu lemon also needs to step up efforts. At present, Lulu lemon is only distributed through e-commerce channels and more than 440 stores, although the brand has been laid out in overseas areas such as Asia, but the number is not large. According to the new five year plan, the overseas market will be the focus of Lulu lemon's efforts in the future.

While in the field of sports shoes, Lulu lemon has not specifically described what shoes they will make, but the brand said that the market gap has been discovered, which can not help but give some expectation. Lulu lemon from the minority sports field will shake the original sports shoes market?

36 krypton: how does lululemon become the market value of the global sports apparel retailing third?

In recent years, the retail market has been sluggish, but there are exceptions. Thanks to the global fitness craze - you may be one of the participants - the growth of sportswear is quite good. But the fastest and brightest among them is not Adidas, or Nike, which has a market value of up to 140 billion 200 million dollars or 55 billion 100 million dollars. It's lululemon. The well-known brand of yoga clothing products has grown rapidly since 2018. Although it has a gap with Nike and Adi, it has become the third place in the field of sports footwear. Market capitalization has gone against the professional sports brand Under Armour (Andemar), up to 27 billion 100 million US dollars.

In this year, Q2, Lululemon delivered 21% of the rapid growth (North American market), far more than Nike and Adidas. In the international market, the growth of lululemon is also strong, the European market has gained 35% growth, and the Asia Pacific region has reached 33%, thanks to the strong promotion of China's 68% market, lululemon will expand in China next year.

However, if it is only located in the high-end niche market, it can not become the world's market value of third of sports shoes and clothing company. What is worth exploring is why lululemon can grow up from the cracks in the sports apparel market controlled by Nike and Adidas.

In addition, after listing on NASDAQ in 2007, lululemon was not smooth sailing. A large scale recall was caused by improper remarks, product quality and design problems of management "discriminating against women", and the market value was shrunk seriously, or even on the verge of bankruptcy. But by 2018, lululemon has been growing faster than its peers, creating an investment myth of ten times (1100%) in ten years. Since the beginning of 2018, lululemon has increased by 160%.