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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Harshu Vyas who wrote (78175)	10/2/2025 2:02:19 PM
From: petal	Respond to of 78465

Well in Sweden at least it's very common for women to wear them as every day clothing, not only for workouts. These new designs are still yoga pants, they just have a rather slight bell-bottom design at the very bottom part of the pants – everything else is still tight. I agree with you of course that Lululemon isn't the entire yoga pants market, but they seem to be a big player in it (as well as in some other "athletics clothing"). I agree that is difficult to assess. But I take comfort in the fact that I've seen many tights with the Lululemon logo on them, and they look quite good indeed. More importantly than this anecdotal and subjective "evidence", I take comfort in their numbers: huge earnings growth (still) and great return on capital/equity. LULU, otoh, is as popular as I've seen it Well stock is down -65 % from its Dec '23 high (: So stock is not that popular. Used to be popular though, for a long time – 10 year average P/E is 36. (Now P/E is 12, as I mentioned before.) So my idea is that Lululemon brand/product is still quite cool, and might get cooler still, but the stock is not very cool anymore. The kind of stock I like! I'd take the bet if yoga was distressed - but I've never seen it more popular Agreed – I'm not saying that yoga isn't trendy still, I'm saying that the stock is distressed! ;) Maybe the market is right and yoga pants trend is over (this valuation would have to assume that, no?). I'm going with Burry and betting that Lululemon will keep making guud money, and that LULU stock will rebound, as this becomes clear to the market. This feels sort of like in 2022 when everyone got scared about Mr. Zuck going crazy, spending massively on VR and yapping about the Metaverse, and subsequently traded Meta down to P/E sub-10 for a time. I got scared out too then, but have learned my lesson since: great companies usually keep being great companies. (Maybe it's different with clothing companies, IDK; possibly. Maybe some oldhead will school me? :))