Key Points
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Lululemon Athletica Inc. is currently trading at $235, down 54% from its 2023 peak of $516, with a P/E ratio of 16, suggesting it may be undervalued despite 19% annual revenue growth over the last decade.
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Deckers Outdoor, which owns brands such as Hoka and Ugg, has seen its stock decline 52% this year, with a forecasted decline in earnings despite 9% expected revenue growth in the first quarter.
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Roku reported a 16% year-over-year increase in revenue for Q1 2025, primarily driven by advertising, and is collaborating with Amazon to enhance advertising reach, although its stock remains 82% off its all-time highs.
Investment Insights
Lululemon’s current market position, with trailing-12-month revenue at $10.8 billion, presents a stark contrast to rivals like Nike and Adidas, which collectively account for $72 billion in annual sales. The company posted a 7% revenue increase in its latest quarter, indicating resilience amidst a challenging economic environment.
Deckers, facing short-term challenges including tariff pressures leading to an anticipated $150 million increase in costs, still exhibits a strong potential for long-term growth, particularly with new brands. As for Roku, its innovative advertising strategy is gaining traction, reflecting a shift in growth outlook despite past losses.
