u/abolys ·
Reddit — r/ValueInvesting
· May 25, 2026 at 13:25
· ⬆ 17 pts
· 💬 24 comments
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AI Summary
Summary
Author argues Lululemon (LULU) is undervalued due to flattening North America sales from tariffs offset by 20% international growth, leading to ~10% overall revenue growth.
He believes the proxy fight is noise and expects international revenue to surpass North America by 2027, making this at least a 2-year hold.
Quality assessment: Reasoned opinion with some data (author links a Google Doc), but lacks deep financial modeling – leans toward speculation with a clear directional bias.
Score17
Comments24
Upvote %90%
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I think all the proxy talk is just noise. does not matter who gets the control (I personally prefer current board/CEO).
LuLu story is north America sale flattening due to tariffs and international sale grow at 20%.
If things stays the same we will get around 10% revenue growth per year and it will take till 2027 for international to over take north America.
I think a lot of non American brand are moving in the same direction. Keeping US market as is and investing in international.
To me LuLu is undervalued and it is at least a 2 years hold.
[https://docs.google.com/document/d/1jauWBzCyP-cEU9U3YRjJmq3bksVnXuBDV6X2wZHD3Ls/edit?usp=sharing](https://docs.google.com/document/d/1jauWBzCyP-cEU9U3YRjJmq3bksVnXuBDV6X2wZHD3Ls/edit?usp=sharing)
Disclaimer, I bought LuLu 2 weeks ago, very small position and considering to buy more.
North America sales are flattening due to tariffs, but international revenue is growing at 20%, driving ~10% total revenue growth through 2027. The market is overly focused on proxy/board drama, creating a mispricing opportunity as LULU’s international expansion is underappreciated. LULU is undervalued relative to its long-term growth potential from international markets; a 2-year hold captures the inflection point when international overtakes NA. Tariffs worsen, international growth slows, or proxy fight leads to disruptive strategic changes; recession could hit consumer discretionary spending.