Key insights
- The author believes Lululemon is undervalued due to its international growth potential offsetting flattening North American sales impacted by tariffs. They project 10% annual revenue growth and see international sales overtaking North America by 2027. This suggests a potential shift in revenue drivers for US-listed companies with significant international exposure.
I think all the proxy talk is just noise. does not matter who gets the control (I personally prefer current board/CEO).
LuLu story is north America sale flattening due to tariffs and international sale grow at 20%.
If things stays the same we will get around 10% revenue growth per year and it will take till 2027 for international to over take north America.
I think a lot of non American brand are moving in the same direction. Keeping US market as is and investing in international.
To me LuLu is undervalued and it is at least a 2 years hold.
https://docs.google.com/document/d/1jauWBzCyP-cEU9U3YRjJmq3bksVnXuBDV6X2wZHD3Ls/edit?usp=sharing
Disclaimer, I bought LuLu 2 weeks ago, very small position and considering to buy more.