LULU down 53% YTD?
How do you analyze retail stocks?
A lot has been said about Lululemon (LULU) in the past few weeks. The stock is down 53% YTD, while it compounded significantly from 2016 to 2020. What was that driven by? It’s a classic retail story.
In part 1 of this writeup, we will cover:
How do retail companies operate and grow?
What are comps?
What are the levers of comps?
How do long/short consumer analysts look at retailers (though much more on that to come)?
We will briefly address LULU based on all the concepts and discuss idea generation.