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MarketFoolery

Lululemon: Investing in the Sweat Life

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 30 June 2020

⏱️ 18 minutes

🧾️ Download transcript

Summary

Lululemon athletica shares rise after the company buys at-home fitness tech company Mirror for $500 million. Microsoft, Adidas, and Ford Motor join the growing list of companies taking a break from advertising on Facebook. Jason Moser analyzes those stories and discusses selling strategies as we dip into the Fool Mailbag.


Last but not least, the new Motley Fool swag shop is finally open!
Check it out at http://Shop.Fool.com.)

Transcript

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0:00.0

It's Tuesday, June 30th.

0:03.6

Welcome to Market Fulry.

0:05.2

I'm Chris Hill with me today.

0:07.2

The one-on-only, Jason Moser.

0:08.6

Good to see you, my friend.

0:10.0

Good to see you, I think I'm the one-and-only.

0:12.1

I guess we could do a Google search later and try to figure that out, but at least I'm the one that counts for our purposes.

0:18.0

You know what? In terms of in the eyes of market foolery and Motley full money and industry focus, you're the one and only.

0:24.0

We're going to dip into the full mailbag today.

0:28.0

We're going to talk about Facebook again because a lot has happened in the last 24 hours

0:31.0

but we're going to start with the deal of the day

0:34.1

which is Lulu Lemon Athletica buying Mirror which is an at-home fitness company.

0:40.4

Lulu Lemon is going to pay $500 million. Mirror sells a tech enabled mirror

0:47.3

with a camera and speakers so you can take part in live fitness classes in your home and this must be a great deal at a great

0:56.7

price or a great deal at a good price because shares at Lulu Lemon are up 7% today

1:01.7

Jason.

1:02.8

Yeah, I mean, the stock itself is having a good year.

1:05.8

I mean, it's up 70% or so.

1:07.6

So I mean, hey, why not take a chance?

1:09.3

And you know, like, Lulu Lemon has,

1:12.0

you have the Disney Channel with the Sweet Life, Lulu Lemon has, you have the Disney Channel with the sweet life, Lulu Lemon has the sweat life and that's what this really all revolves around is creating this sort of this this sweat life identity right and I mean it's it's what we've known

1:26.3

Lulu Lemon for for so long is obviously their apparel there was always a question as to how big that market opportunity was but they've done a very good job of taking it beyond I think just that core yoga market and I think the typically stereotypical female demographic right they have really

...

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