My limit buy for Lululemon recently triggered at about $110. I knew they would have an earning miss and so the day before when their stock was $118, I set a limit by for $115. After they announced earnings, the very next day was gap down to $110 which is when my order filled. I am now a shareholder but don’t know how much longer to hang onto this stock.
I’ve actually been following these guys for more than 10 years and was incensed when I didn’t pull the trigger back then but I’m happy that I did not because it looks like the major value for the stock has already been captured.
On the other hand, when I look at American Eagle outfitters, they have done really well. **My thesis in focusing on Lululemon is that consumer sentiment is really low right now and Lululemon‘s market segment is primarily upper middle class women. As consumer sentiment improves, they should spend more on Lululemon clothing.**
I see it as a quick trade and not a long-term hold but not sure which key metric I should focus on beyond just the usual financial metrics which I know how to assess.