Q: I also like LULU for the longer term growth potential and the fact they seem to executing well on their plan to get to $12B in revenue by 2026. I'm optimistic about the Chinese growth opportunity, but I did see an interesting WSJ video this week in which they reported that young Chinese have less reverence for Western brands than previous generations. Sharing a bear case perspective for others to consider in their analysis: https://youtu.be/hHOSEFRtaNc?si=biHglaJfBs0yuJ_c
5i Research Answer:
Last year, China accounted for less than $1B in sales, out of $9.6B. Still, it is an important market, but we think it can still grow in the country even as tastes change. There is still an opportunity there and elsewhere. Plus, the stock is very cheap vs historical averages already.