Lululemon Athletica Intrinsic Value Calculation – Lululemon Reportedly Eyeing Acquisition of Hydrow’s Rowing Machine Brand, Mirror

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Lululemon Athletica ($NASDAQ:LULU) Inc. is a publicly-traded yoga-inspired apparel and accessories retailer, based in Canada. The company operates retail stores in the United States, Canada, Australia, New Zealand, the United Kingdom, Singapore, Germany, and Hong Kong, among other countries. According to a report recently released by Bloomberg, Lululemon has expressed interest in acquiring Hydrow Inc., a direct-to-consumer maker of indoor rowing machines. The company is reportedly looking to purchase Hydrow in order to acquire its Mirror sale, a device that allows users to stream workout classes from their own home. The potential move for Lululemon highlights the company’s drive to expand beyond its traditional apparel offerings and enter into the space of connected fitness.

If Lululemon were to acquire Hydrow, it could potentially gain access to the company’s customer base and technology, while leveraging its own expertise in marketing and retail. The report suggests that Lululemon is looking to expand its presence in the connected fitness space, which could be beneficial for the company in the long run given the shift towards virtual workouts that has occurred over the past year. It remains to be seen whether or not the acquisition will come to fruition, but it appears that Lululemon is serious about exploring this opportunity.

Market Price

On Wednesday, Lululemon Athletica Inc. reported that it is looking into acquiring Hydrow’s rowing machine brand, Mirror. Lululemon’s stock opened at $371.8 and closed at $370.1, down by 0.6% from the previous closing price of 372.5. The company stated that as part of its expansion plans, it is looking to acquire the rowing machine brand and merge it with its existing yoga and athleisure products. The acquisition would allow Lululemon to become an even greater player in the activewear and fitness equipment markets. The move comes as Lululemon looks to further diversify its product portfolio.

With the addition of Mirror to its product lineup, Lululemon could potentially reach a wider consumer base and maximize its market share in the industry. The future of this potential acquisition remains uncertain, but it could be a boon for both Lululemon and Mirror. If the deal goes through, it would mark an important step forward for Lululemon’s long-term business strategy, as well as its mission to become the leading athleisure and activewear brand in the world. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis – Lululemon Athletica Intrinsic Value Calculation

At GoodWhale, we provide an analysis of the fundamentals of LULULEMON ATHLETICA. Our proprietary Valuation Line has calculated the intrinsic value of their shares to be around $491.5. This implies that the current market price of $370.1 is undervalued by 24.7%. This presents a great opportunity for investors to buy into this company at a discounted rate. More…

Peers

Lululemon Athletica Inc is a yoga-inspired, technical athletic apparel company for women. The company operates in the United States, Canada, and Australia. Lululemon Athletica Inc’s main competitors are Buckle Inc, Citi Trends Inc, and Tilly’s Inc.

– Buckle Inc ($NYSE:BKE)

Buckle Inc is a leading retailer of casual apparel, footwear, and accessories for young men and women in the United States. As of 2022, the company has a market capitalization of 1.77 billion dollars and a return on equity of 55.65%. Buckle Inc operates over 450 stores in 44 states across the country, and offers its products through its website and catalog. The company’s mission is to provide great fashion at a great value for its customers.

– Citi Trends Inc ($NASDAQ:CTRN)

Citi Trends Inc is a value-priced retailer of urban fashion apparel, accessories and home décor. The company operates over 600 stores in 31 states. Citi Trends’ mission is to be the largest and most convenient source of trend-right fashion at the right price for our target demographic of urban youth.

– Tilly’s Inc ($NYSE:TLYS)

Tilly’s Inc is a company that operates in the retail industry. The company has a market cap of 239.38M as of 2022 and a return on equity of 19.35%. The company operates through two segments: stores and e-commerce. The company offers a variety of products including apparel, footwear, and accessories for men, women, and children. The company operates stores in California, Arizona, Nevada, and Texas.

Summary

Recently, the company has been exploring the purchase of home-fitness company Hydrow in an effort to increase its presence in the rapidly growing digital fitness market. Investors have reacted positively to the news, with the stock trading higher after the news broke. Analysts view the potential sale as a strategic move that could help Lululemon diversify its product offerings, potentially offering more differentiation from its competitors. With the growing demand for digital fitness options and potential cost savings from a potential purchase, investors remain optimistic about Lululemon’s future prospects.