Overview
- Shares sit roughly 50% below the 52-week high and trade at modest multiples, including a P/E near 14.3 and a much lower P/S than a year ago.
- Forbes outlines selling a 12/18/2026 LULU put at a $150 strike for about $940 in premium, targeting roughly a 6.5% annualized return on reserved cash plus around 4% in cash yield.
- The options strategy retains the premium if the stock remains above $150 or leads to buying shares at an effective cost near $140.60 if LULU finishes below the strike.
- The investment case highlights a durable brand, high gross margins, positive free cash flow, and more than $1 billion in cash with no material debt.
- Risks include slowing North American comparable sales, tariff pressure on margins, cautious Q4 guidance, and a history of sharp drawdowns even as international and men’s segments grow.