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Motley Fool Hidden Gems Investing

High Fashion, Hard Seltzer, and the Business of Football

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 10 September 2021

⏱️ 39 minutes

🧾️ Download transcript

Summary

Lululemon shares hit an all-time high on earnings. Dave & Buster’s delivers a surprise. Boston Beer falls on sluggish seltzer sales. And fintech company Affirm soars on strong revenue growth and an Amazon partnership. Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and talk about the latest from RH, Coupa Software, Paypal, and Caseys General Stores. Our analysts share a couple of investment ideas on their radar: C3AI and Allbirds. Plus, Villanova sports law professor Andrew Brandt talks about the business of football and the future of sports betting. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money.

0:19.0

It's the Motley Fool Money radio show. I'm Ron Gross sitting in for Chris Hill.

0:23.0

Joining me today are senior analysts Emily Flippin and Jason Moser.

0:28.0

Fools How You Doing? Hey Ron. Good to see you Fools.

0:33.0

Earning season isn't over yet. Today we're going to talk Fintech, home furnishings and video games.

0:40.0

But we begin with something you'll never see me wearing and that is yoga pants.

0:45.0

On Thursday, Lulee Lemon reported results that handily beat expectations and the shares were up more than 10%.

0:53.0

Emily results look strong. Should investors be concerned about the supply chain issue they talked about or is that just a temporary problem?

1:01.0

Supply chain issues are completely overblown for Lulee Lemon, not just because they're impacting all manufacturers across numerous industries.

1:10.0

But because Lulee Lemon is in the enviable position of being able to pass along most of these costs to customers, which means they've mitigated their supply chain delays with things like more air frights.

1:21.0

They can afford to lose some points on their gross margins over the short term and comparison to their competitors.

1:27.0

And moreover, their clothing tends to be less seasonal than other retailers, which means they generally have less inventory risk and whose stable offerings throughout the year does also insulate them from the supply disruptions.

1:38.0

But Ron, you should really never say never when it comes to yoga pants because if you look at this quarter for Lulee Lemon, a bright spot was actually their men's apparel.

1:48.0

It grew faster than their women's apparel on a two year basis.

1:52.0

Total revenue is at more than 60% year-over-year. I guess apparently we're not all done pretending like we're working out.

1:59.0

I imagine there are some people out there who are putting their sports bras on for Lulee Lemon and jumping on their peloton or jumping in front of their mirror.

2:07.0

But I think even more people are just putting on their comfy Lulee Lemon clothing because they adopted this very comfortable lifestyle from the pandemic.

2:17.0

That they're pulling over into their daily lives even as they go back to the office.

2:21.0

All right, I will keep an open mind. So, companies like Lulee, they've obviously benefited from work from home, from exercise at home.

2:28.0

Let's have some fun. For both of you, what's one current trend that you think stays or goes away post-COVID? Emily?

2:37.0

For me, I think it's our consumption trend. I think what stood out to me about over the past few years and it compares into how American shop is just how willing we are to still spend money, even though we're not going anywhere.

...

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