u/investorinvestor ·
Reddit — r/ValueInvesting
· August 07, 2026 at 11:51
· ⬆ 23 pts
· 💬 43 comments
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AI Summary
Summary
Post argues LULU is undervalued at ~9x PE despite US growth and brand concerns.
Author highlights strong international comps: China +20%, ROW +10%, with intl ~30% of revenue.
Sees potential catalyst in new Nike-hired CEO and repositioning vs Alo/Vuori.
Quality assessment: Reasonable value-investing thesis with supporting data, but somewhat speculative on turnaround.
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Comments43
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Lululemon is trading at just 9x PE - on growth concerns in the United States and brand erosion worries. But comps grew by over 20% in China and 10% in ROW, with the latter markets representing 30% of total revenues cumulatively. A turnaround also seems imminent with the incoming CEO headhunted from Nike. Is the market discounting its shares too much? 9x PE seems like Gap or Under Armour territory, which most would argue Lululemon hasn't yet fallen into. It also has a ready remedy - reshaping itself to mimic its new competitors Alo and Vuori.
LULU trades at ~9x PE while international markets grow double-digits. Market is pricing US weakness as permanent, ignoring 30% high-growth revenue mix and possible CEO catalyst. Valuation offers asymmetric upside if brand concerns ease or intl momentum continues. US brand erosion accelerates, new CEO fails, Alo/Vuori keep taking share.
This Reddit post, published August 07, 2026,
features u/investorinvestor
discussing LULU.
1 trade idea extracted by AI with direction and confidence scoring.