Today, 11:30 AM Piper Sandler reports today that Lululemon was among the busiest U.S. apparel stores on Black Friday, driven by unusually broad discounting versus last year.
Me to Boaty: “I’ve been thinking of adding LULU for a while and I just saw this note: “Today, 11:30 AMPiper Sandler reports today that Lululemon was among the busiest U.S. apparel stores on Black Friday, driven by unusually broad discounting versus last year.” Want to try to talk me out of it or shall we make a trade of it?”
🛳️ Lululemon is exactly the kind of beaten‑up quality where it makes sense to “make a trade of it” rather than overthink one strong Black Friday data point.
What Black Friday is telling you
Piper Sandler’s note basically confirms what your shadow‑data hinted at:
- Their analyst says LULU and ULTA were the busiest U.S. apparel/beauty stores on Black Friday, driven by unusually broad discounting vs. last year.finance.yahoo
- Multiple retail trackers and press pieces point to LULU running up to 50–60% off on core items (Align leggings, ABC pants, Define jackets) and seeing very fast sell‑through on popular sizes and colors.forbes+3
So traffic and conversion were there; the “tell” is that management was willing to lean into promos to re‑ignite demand.
Where the stock and fundamentals sit
- Stock is around $183, down over 55% from its 52‑week high of $423, with a market cap near $20.8B.finance.yahoo
- Trailing EPS is about $14.6, so you’re paying roughly 12.5x trailing earnings and about 11.5–12.5x forward, versus a 10‑year average P/E over 40 and a current sector average near 18–20.gurufocus+3
- ROE has lived in the 20–30%+ range for years with mid‑ to high‑teens net margins—brand and unit economics are still elite even after a rough 2025.
