We've long wondered why even after ticking off consumers and the general female population at large, luxury yoga wear and apparel maker Lululemon Athletica (LULU) remained such a darling among analysts.
It appears that thread may be wearing thin at Sterne, Agee & Leach. A few days ago, Sam Poser fired off a zinger on the news Lululemon was donating to the Dalai Lama Center for Peace & Education.
Poser is at it again today and downgraded Lululemon from Neutral to Underperform in a note. Poser writes:
The Lululemon brand has been damaged due to the many events of 2013 and the uninspiring tenure thus far of the new CEO. Many customers have left and it’s hard to get them back, especially given the focus on the women’s active apparel business from brands such as Nike (NKE) and Under Armour (UA), and retailers such as Athleta, Sweaty Betty, Victoria’s Secret, and others which have bitten into Lululemon. Low-single digit same-store sales are likely through 2015; such sales growth does not warrant anything more than a 20 times multiple.
Lululemon is down 0.3% to $45.06 this afternoon.
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