Key insights
- The author expresses bearish sentiment on Lululemon due to the hiring of a Nike veteran as CEO, viewing it as uninspired. They cite changing fashion trends and personal observations as reasons for their negative outlook. The author also notes that Nike's valuation remains high despite its stock price decline, reinforcing their skepticism about the apparel sector.
“Struggling, in decline business hires a man from another struggling, declining business as their CEO.”
Funny and ironic.
Imagine Blockbuster in the 2000s hiring Hollywood Video veteran for their CEO to compete against Netflix.
Literally don’t see any young woman wearing leggings anymore. This generation of women just wears loose baggy pants.
Glad I sold this stock at $220 when it got that pop from Elliot Management initiating a stake.
What’s noteworthy about Nike is despite their massive share price collapse from its all time highs, the stock is still not cheap. It’s market cap is still high. It’s dividend is still only 3%. Average dividend yield for a blue chip. P/E still high.