Post #708 by DTB on the Falling Knives board

Investment Strategies / Falling Knives ❤

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down to $195, back where it was in 2019.

If you think they can earn $14 / share this year then it looks like good value;

For what its worth analysts have the range of $12.92 to $16.26, with $14.72 as the average. This coming quarter is estimated at $2.90

I am contemplating starting a position here...

I am sorely tempted, too, but I think the whole question is, is Lululemon going out of fashion, with sales and earnings falling off in the next few quarters, or can the company be expected to continue at something like the current level of sales and perhaps keep growing, as it has in the past? Clearly, the fall-off in price is because a lot of investors think the brand is stale and customers are starting to prefer alternatives like Aritzia, Vuora, or at the cheaper end Athleta, Nike, Alo Yoga, etc.

Fashion is fickle, and I don't have enough of a feel for this to buy LULU at 13x trailing earnings. My gut feeling is that the brand is still intact but what would a 60 y.o. male like me know?

dtb

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