lululemon athletica inc.

lululemon, commonly referred to as lulu, started in Vancouver, Canada as an iconic brand for yoga apparel and has since expanded globally into other athletic apparel, footwear, and accessories. With over $7 billion in revenue in FY25, almost 800 stores, and 39,000 employees, the Americas, predominantly the United States, accounted for approximately 75% of revenue, followed up by China at 13%, and the Rest of the World at 12%. Ousted founder Chip Wilson, who retains ownership of about 9% of the stock, has periodically criticized management but recently has escalated his criticism and basically issued a call to potential activists interested in either ousting the board and management and possibly taking the company private. Given recent challenged results and execution missteps, geopolitical uncertainty, and the possibility that such activism might not come to fruition, it's a speculate proposition however the valuation looks attractive unless earnings implode. Although incorporated and based in Canada, I include this in my U.S. investments given its exposure to the U.S. and it trades on the Nasdaq and not the TSX.

Estimates          3Q26                      4Q26                      FY26                       FY27

Revs                        2.48b                      3.57b                      10.97b                  11.49b

EPS                          2.24                         4.99                         13.05                      13.23

y/y                             -22%                       -19%                       -11%                       +1.4%