Really interesting, thank you! I'm curious about $LULU. Clearly, it's a premium to Gymshark, and from what I've seen in their stores, product is ok (although too expensive for what it is). Do you have any good comps? I can see insiders are buying, and clearly premium (but not luxury) sport clothes are correlated to the broader economy. People tend to buy less when things are tough at home.
Yeah product is definitely expensive and I agree with your characterization of the company as premium but not luxury. For comps, I used Nike, VFC, Adidas, Abercrombie, American Eagle, and Under Armour. Nike being the best comp out of the group
He. Love the transparency. I see quite a few wide moat companies, so I was wondering, why Crocs? What are you seeing there? Especially since it's such a big holding.
It's an ubiquitous shoe with friendly management in the form of buybacks and capital structure. With that said, the large positioning paired with slowing growth has made me cautious about my stake and I would reduce my position in the event of a big decline to preserve gains. Q2 earnings on May 7!
Really interesting, thank you! I'm curious about $LULU. Clearly, it's a premium to Gymshark, and from what I've seen in their stores, product is ok (although too expensive for what it is). Do you have any good comps? I can see insiders are buying, and clearly premium (but not luxury) sport clothes are correlated to the broader economy. People tend to buy less when things are tough at home.
Yeah product is definitely expensive and I agree with your characterization of the company as premium but not luxury. For comps, I used Nike, VFC, Adidas, Abercrombie, American Eagle, and Under Armour. Nike being the best comp out of the group
Yeah, very in line with the comps we used to use in our BB bank when presenting to them, so you have the market view priced :)
He. Love the transparency. I see quite a few wide moat companies, so I was wondering, why Crocs? What are you seeing there? Especially since it's such a big holding.
It's an ubiquitous shoe with friendly management in the form of buybacks and capital structure. With that said, the large positioning paired with slowing growth has made me cautious about my stake and I would reduce my position in the event of a big decline to preserve gains. Q2 earnings on May 7!