u/Ambitious-Toe7345 ·
Reddit — r/ValueInvesting
· September 05, 2026 at 21:18
· ⬆ 15 pts
· 💬 111 comments
| View on Reddit ↗
AI Summary
Summary
Post argues Lululemon (LULU) looks cheap at a ~9 P/E despite terrible earnings, based on brand popularity and product quality.
Author believes LULU is “too big to fail” and contrasts its multiple unfavorably with Colgate’s higher P/E.
Quality assessment: This is speculative valuation noise, not well-researched DD — largely anecdotal observations with no cash flow, balance sheet, or margin analysis.
LULU trades at around 9 P/E after a poor earnings report, a low multiple even for a struggling retailer. If the brand retains consumer loyalty, the market may be over-pricing the earnings decline, creating potential mean-reversion upside. A low-multiple contrarian value play, but not a high-conviction entry without evidence of a fundamental turnaround. LULU is not too big to fail; apparel is cyclical/faddish; earnings may worsen; brand momentum could fade; low P/E may be a value trap.
This Reddit post, published September 05, 2026,
features u/Ambitious-Toe7345
discussing LULU.
1 trade idea extracted by AI with direction and confidence scoring.