Lululemon Why Delay The Electricity Supplier Plan?

According to the world clothing and shoe net, on Monday, North American high-end yoga and Athletic Wear brand Lululemon Athletica Inc. (NASDAQ:LULU) has released its latest performance update. It is estimated that revenue in the four quarter of January 29th will be 7.75-7.85 billion, while the median sales growth in the same store is expected to be 7.65-7.85 billion. The company also narrowed the four quarter EPS forecast, from the previous 0.96-1.01 US dollar to 0.99-1.01 US dollars.

Lululemon Athletica Inc. CEO Laurent Potdevin said in a statement that during the past holiday season, the company achieved strong performance in both entities and online channels, and was satisfied with the work of the global creative team.

However, because last week, the retail sales in the US retail industry in the holiday season were gloomy, and Lululemon Athletica Inc. narrowed the expected scope only, and did not raise the expected upper limit of EPS. The stock price of the company was not stimulated by the news. Instead, there was a 1.6% decline in early trading, which was $68.19 a day, a slight drop of 0.12%. At the end of last year, Lululemon was finally stationed in the Chinese mainland market in December 15th and 16th. brand Shanghai IFC gold center store, Shanghai Jingan Kerry Center store and Beijing Sanlitun shop three shops opened one after another. The company has opened an online store on the Chinese electric business platform Tmall.com Tmall before its opening to the store. Its brand spokesperson has claimed that Tmall's quarterly growth rate has reached 50%.

The brand Sina micro-blog, which was operated by Lulu Le Meng Trading (Shanghai) Limited, was opened in November 25, 2016. As of Monday, there were only 2000 followers, and its Chinese e-commerce website originally scheduled for 2015 is still dragging on. The company said it had opened before the end of the year in China, but it has not yet been seen at the end of the press release.

For China's expansion, the company is currently developing the first tier market in advance, but it is also aiming at the potential two or three line market early. Ken Lee, senior vice president of Lululemon Athletica Inc. group and managing director of Asia market, has revealed that Lululemon has already held 500 people in Chengdu. The ambassadors of scale have reached the top of the brand's mainland market activities. This is what happens when the brand does not sell in the local market. It shows the great potential of the two or three line cities that are not infiltrated but are rich and familiar with Internet and social media.

Group CEO Laurent Potdevin also said it would make fine adjustments according to the different markets. In view of the difference in Asian style, the Lululemon brand design team made appropriate adjustments in size and size, but did not develop specific product lines for individual markets.

In terms of price, Laurent Potdevin has revealed that the price has been deliberately lowered to narrow the price gap with the United States, which is expected to play a driving role in Chinese consumers' consumption rather than tourism consumption. However, in the United States, only 98 dollars (about 677 yuan and 760 Hong Kong dollars) are sold in Lululemon, which is one of the best selling women's Yoga Pants, Align Pant Tmall and Hongkong official website priced at 850 yuan and 920 Hong Kong dollars (about 819 yuan) respectively, and the price difference between China and the United States is 25%.

The two product recall that Lululemon Athletica Inc. had suffered before was badly damaged by the company. It has rebounded in the near future. As of the three quarter of October, the group has achieved a 9 consecutive quarter of same store sales growth, a 7% increase in the three quarter, and a 4% increase in sales excluding E-commerce.

However, the market is still worried about the prospect of the North American sporting goods group. Some analysts have pointed out that female consumers are losing interest in sports and leisure products and the competition is fierce in this field. Mizuho Securities analyst Betty Chen said that compared to the Lululemon brand's yoga and sports tights, burrows and burlap jeans, and Adidas's Adidas and Puma Puma Puma's Retro leisure products are now more popular with women, so she reduced the Lululemon Athletica Inc. (NASDAQ:LULU) target price from $68 to $60.

Deutsche Bank AG (DBK.DE) Deutsche Bank said in a recent research report that during the black Friday, the passenger flow of Lululemon stores was healthy, but consumer spending was weak. Canaccord Genuity Group Inc. analyst Camilo Lyon said that in 2017, the old customers of the brand would only buy 3 tights on average, 1 fewer than 2016 years ago, which means that the group will reduce sales by 127 million dollars next year. He downgraded the group's stock from "holding" to "selling".

The famous financial media website also published an article on Monday, questioning whether Lululemon Athletica Inc. will continue to maintain its growth for the previous two years. The media quoted analysts as saying that jeans would probably regain its moisture and replace the popular leggings and yoga pants. Besides, Lululemon how to maintain product quality while reducing costs, and the company had already had a painful product recall experience; the third point was the Lululemon's best sports underwear and other top products with yoga pants, but on the contrary, the performance of pants was below average.

However, Lululemon Athletica Inc. chief financial officer Stuart Haselden, said at the three quarter earnings conference, "sports and leisure" as a trend will decline like any trend, and competitors who can not provide high quality products and services will be eliminated, and the group will focus on new fabric and product development as a way to distinguish it from other competitors. CEO Laurent Potdevin repeated the five year plan of doubling revenue and earning at least twice the performance meeting.

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