Carlyn Florio ’24 re-pitched lululemon Athletica Inc. (NASDAQ: LULU) on April 24, 2024 after seeing a significant decline in the stock over the last month. The company released earnings on March 6, beating both revenue and EPS analyst estimates. With this, CEO Calvin McDonald weakened their future guidance for Q1 2024, due to changes in consumer patterns and limited sizes in the company’s warehouses. When lululemon was pitched on March 4, 2024, the stock was trading at $458.63 and is currently trading at $357.54 following the company’s news.
The class originally had concerns relating to the company’s inventory levels, and overall did not have conviction in the apparel market, prompting the class to not add LULU to the portfolio on March 4,2024. Since then, the class decided it would be a wise decision to decrease our cost basis through a September 20 370 call strategy at $35.05.
SMIF ultimately voted to buy approximately $36,500 of lululemon Athletica (LULU), financed through selling 70 shares of Tesla and through utilizing $26,349.26 of cash.