This is Zack Fuss, an investor at Irenic Capital, and today we’re breaking down Lululemon Athletica. The Canadian company, founded by Chip Wilson in 1998,
That, and an uptick in shoplifting, has John Zolidis, founder of consumer-focused investment adviser Quo Vadis Capital, bracing for choppy performance in retail stocks over the coming months.
“It’s a lot easier to see the bearish scenario coming to pass,” he said. “The consumer has been stronger than expected so far, so it could continue, but the environment’s working against that outcome.”
The debt ceiling deal was the biggest non-surprise of 2023. So why did the market rally on its completion? The stock market (measured by the
John Zolidis, a veteran retail analyst and president of Quo Vadis Capital, told MarketWatch that retailers might want to limit their expectations, noting that with so many stores looking to fill the Bed Bath & Beyond void, the sales bump might be limited for each.
In effect, the bump “is going to be dispersed,” Zolidis said.
This weekend we were shocked to read that more than 2,300 cans of Miller High Life were destroyed on the orders of French customs authorities.
Will LULU maintain the growth rate and margins? Zolidis, who rates the company’s shares BUY, thinks so.
“The company has kept it going much longer than nearly all others,” he said. “Bottom-line, after two years of the stock moving sideways despite consistent upward revisions to earnings, last night’s results could be the event that sets off a round of valuation expansion and vaults the name firmly back into the momentum camp. Certainly, this profile is not for everyone but for those already involved, we feel that playing for additional gains is supported by the fundamentals and outlook.”
The Sixteenth Largest US Bank Failed Last Week Together with Yet Another Crypto-Linked institution. Markets sold off last week. Two factors were at work. First,
News reports claim that Canada and the U.S. have abandoned the search for downed floating objects. Apparently, the governments are comfortable that they may never have an
John Zolidis, founder and president of Quo Vadis Capital, said: “The question for shareholders is whether the company can scale to profitability and positive cash flow without needing an equity raise. It’s a steep hill to climb but could be possible depending on execution.”