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No. of Recommendations: 5
As I'm sure some monkeys saw, LULU pre-announced better SSS possibly as high as mid-teens, and EPS 5-7c better representing 30% growth at the midpoint.

In the past 3 years, their Q4 results have still beaten their improved pre-announcement by almost 3%. This mgmt team is conservative.

Stock is trading at 26.5x 2020 eps estimates net of cash.

E-commerce stands at ~25% penetration today with management citing ample opportunity for continued improvement over time noting several company specific drivers of incremental oppty.
Importantly, CRM remains an early innings opportunity with better customer data files and data analytics only put in place for the first time during June. On the bottom-line, e-comm margins stand at ~40% today and will continue to be a structurally higher margin business versus stores.

Mgmt has said now 60-75% of store openings will be Int'l vs the 50-50% forecast before NoAm/overseas. That's your risk right there.
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