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MarketFoolery

Lululemon's New Move and 1 Hot IPO

MarketFoolery

The Motley Fool

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

4.71.7K Ratings

🗓️ 12 December 2019

⏱️ 18 minutes

🧾️ Download transcript

Summary

Lululemon reports strong earnings but shares slip on concerns over future growth. And financial software maker bill.com makes a successful debut on Wall Street. Motley Fool analyst Ron Gross discusses these stories and weighs in on the broader IPO market.

Holiday music - “You're a Mean One, Mr. Grinch” by Small Town Titans

Transcript

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0:00.0

It's Thursday, December 12th.

0:03.5

Welcome to Market Foolery.

0:04.8

I'm Matt Greer and I am joined in studio by the one, the only Motley full analyst Ron

0:11.5

Ron, it is just you and me that's all we need

0:15.0

Mac we're good we got this that is all we need let's hope that the sum is

0:19.6

greater than the parts I mean the parts are impressive but I think let's let's go for a sum that's

0:24.0

a lot of that's a lot of math we've got to get done here. Well Ron speaking of

0:28.4

math we have a new IPO and yes Ron it involves a company automating and digitizing financial

0:34.8

operations for small and mid-sized businesses that sounds important and we will

0:38.8

also talk about some of the years other IPOs the hot Hot and the Not So Hot, but we begin with Lulu Lemon, the

0:46.6

maker of yoga wear and other athletic apparel, shares down around 4% today at the time of our taping.

0:54.4

And Ron, that surprised me because they post better than expected earnings

0:59.2

and same store sales up 17% for the quarter, but concerns over the fourth quarter outlook.

1:05.8

Yeah, this is a very strong report in and of itself.

1:09.8

Investors are focusing on their guidance for the holiday season that's weaker than folks had hoped for.

1:15.1

I think there's a little bit of a misunderstanding here because last year's quarter actually

1:20.1

had an extra week, so the comparisons look a little bit worse than they will

1:23.5

actually be if you compare apples to apples rather than apples to weeks. But

1:29.4

still when you have a stock that's done this well, 80% increase just this year alone, priced pretty

1:37.4

high relative to other retailers or specialty retailers, you have to do everything right, or you're going to to get the stock's going to get hit a little bit.

1:46.0

But looking just at the quarter, still very, very impressive as you noted.

1:51.4

Revenue up 23% with ComS sales up 17.

...

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