1. Lululemon shares rose 10% despite a 3% decline in U.S. revenue. 2. International growth, especially in China, surged 35%, offsetting domestic weaknesses. 3. CEO resignation may redefine U.S. strategy and spark innovation. 4. Lululemon's focus on technical performance aims to combat rival brands. 5. Stock is revalued towards a 'Global Brand' multiple after earnings beat.
FAQ
Why Bullish?
Despite U.S. challenges, Lululemon's international growth and earnings exceed expectations.
How important is it?
Market is reacting to strategic shifts and international growth, suggesting potential resilience.
Why Short Term?
An immediate positive response is likely, but ongoing CEO transition may introduce volatility.