Good Data, Good Results, Poor Stock Performance
Sometimes good data doesn’t lead to a valuable outcome. We saw an example of that this past week at TickerMine. We posted a story on LuLu Lemon Athletica Inc. (LULU) that showed very strong average sales, lots of repeat customers and modest discounting. We thought the story pointed to a positive quarterly report for the company. In fact LULU did post 10% more revneues than analysts expected. However, as LULU expands the company sees lower EPS for the remainder of the year. The net result? Stock down.
LULU is probably a long term winner in the athletic clothing space. Near term the right data did not lead to the right outcome.
6 months ago