Widely reviled yogawear maker Lululemon ($LULU) is skull-hammering shorts after guiding for better than expected sales and profits.
Shares finished just under $60 afterhours, a 9% gain. Short interest is up ~50% since last summer. It was a good trade… right up until tonight when bears got their heads kicked in by a hippie yoga company with inventory control problems.
Malls don’t die. Bad stores do. Lulu is likely to spend some time planking around the $60 level. The stock owes us nothing between now and when they report earnings. If you’ve been trading along don’t be afraid to book some profits.
If you’ve been fading me on the short side… Namaste.
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The “Inverted Batman”, Is there a scan in Exodus for that set up? LOL.
I hate the whole concept of $LULU. Maybe Batman will destroy them forever. Go! Make money on this pseudo-aspirational way of life.
From what I am starting to see, there is a different type of shaped customer wearing this type of stuff. Picture your sloppy sweatpants wearing person, but much more graphic.
You really can’t unsee “Inverted Batman,” can you? Second the call for an Exodus scan.
Anyone holding Lulu will probably be selling it hand over fist. If we are using the Fall 2008 playbook (which it appears we are), Lulu will be downward facing dog at the end of the close.
Macke nailed this one
My wife has been wearing LULU since the days when she had to get a friend to bring it back for her when returning from summer Canadian vacations. She still shops, but says they’re too common, not as exclusive or elite in the space. She’s looking hard at other brands first (Stella McCartney for Adidas, Michi, Koral)
Low-key, I think she and her ultrafit compadres enjoyed that the land whales couldn’t wear their same outfits. That’s not really the case anymore…
Well, UncleBuccs, maybe there is hope for LULU. Best service that they provide is that they supposedly hem the pants for you at POS. That is a great service.
vampy- When you try it out, please let me know how it goes..
Goldman out calling LULU at tactical short ahead of earnings.
Godspeed on that, Goldman. Select retailers continue to be strong…