IN THIS EPISODE, YOU’LL LEARN:

• The competitive advantages of Lululemon.
• How Lululemon’s margins compare to their competitors.
• What will drive Lululemon’s future growth.
• How large Lululemon’s total addressable market is.
• Our assessment of the management team and balance sheet.
• Our thoughts on the valuation.
• Lululemon’s most important key performance indicators.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: On today’s episode, my co-host, Kyle Grieve, and I will be covering our best quality stock idea for Q2, 2024. This is the quarterly series where we share a quality stock that we find to be interesting and worth considering for our own portfolios. Even if you aren’t into individual stocks or not interested in the company we’re covering today, you may find value in hearing our thought process for how we think about analyzing a business.

[00:00:23] Clay Finck: This quarter, we’re going to be covering Lululemon. Lululemon is well known in the world of quality investors, as they have very impressive earnings growth and return on invested capital figures. And the share price has recently declined by over 30%. During this episode, you’ll learn about their business model, growth drivers, valuation, the competitive landscape, management team, balance sheet, and much more.

[00:00:46] Clay Finck: If you missed our previous two episodes on our best quality idea series, I’ve linked them in the show notes in case you’re interested in checking those out as well. Also at the end of this episode, Kyle and I are also going to talk about what we’ve been up to recently in our TIP mastermind community.

[00:01:01] Clay Finck: With that, let’s get right into today’s episode on Lululemon. 

[00:01:04] Intro: Celebrating 10 years and more than 150 million downloads. You are listening to The Investor’s Podcast Network. Since 2014, we studied the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Clay Finck.

[00:01:33] Clay Finck: Welcome to The Investor’s Podcast. I’m your host, Clay Finck. And today I welcome back my co host, Kyle Grieve for our Q2, 2024. Best quality idea series. So Kyle, as always, thanks so much for joining me on the show. Happy to be here. So this is our third episode we’ve recorded on the best quality idea series.

[00:01:53] Clay Finck: And for those not familiar, this is where Kyle and I take a look at our portfolios, take a look at our watch list and find a company that seems to potentially be a good Quality opportunity in the market at this time. So for today’s episode, we’re going to be covering Lululemon, and I’m going to kick off the episode with a brief overview on the company, go a bit on a tangent here, and then I’ll throw it over to Kyle and dive into some of the specifics.

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BOOKS AND RESOURCES

• Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
• Books mentioned: The Story of Lululemon, 7 Powers
• Related Episode TIP604: Best Quality Idea Q1 2024 w/ Clay Finck & Kyle Grieve | YouTube Video.
• Related Episode: TIP587: Dino Polska: A Polish Compounder w/ Clay Finck & Kyle Grieve | YouTube Video.
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