Apparel

Lululemon: A Blip or a Break?

Magic Markets2024-06-12T18:17:48+02:00

Lululemon is a case study in not just retail, but the value of building out communities in the customer base and delivering omni-channel to a high standard. There's no debate here on whether this is a good business. But of course, investing is about what you get and what you pay for it. With the recent slowdown at Lululemon, the high valuation multiple suffered a nasty unwind. Is this the opportunity for investors to jump in at a better price point, or is caution still needed?

Lululemon: A Blip or a Break?Magic Markets2024-06-12T18:17:48+02:00

Foot Locker: Lacing Up?

Magic Markets2024-06-05T10:36:14+02:00

The Lace Up strategy at Foot Locker is showing some green shoots, but will it be enough? Retail turnarounds are notoriously difficult at the best of times, with Foot Locker struggling with the additional nuance of its relationship with Nike. The market has gotten excited about the turnaround, which also brings valuation risk into the analysis.

Foot Locker: Lacing Up?Magic Markets2024-06-05T10:36:14+02:00

Magic Markets Ep171: Foot Locker and Nike

Magic Markets2024-04-18T17:28:29+02:00

Foot Locker and Nike: friends, but also enemies. Foot Locker is Nike’s customer, yet Foot Locker’s customers are also Nike’s customers. Nike’s customers are Foot Locker’s customers. As you can see, there’s only one way to describe the relationship status here: complicated. Foot Locker has been the love-to-hate stock that value investors sometimes dip into. Nike has been a growth investor favourite, yet the stock really hasn’t done well either.

Magic Markets Ep171: Foot Locker and NikeMagic Markets2024-04-18T17:28:29+02:00

Magic Markets Ep168: Lululemon and FedEx

Magic Markets2024-03-28T00:36:15+02:00

FedEx and Lululemon have both been covered and recapped on Magic Markets Premium before. We love circling back and revisiting companies that we’ve researched before, as the feedback loop is so important when testing how an investment thesis played out. Join us in this week's free show for an update on the latest company news and our updated views.

Magic Markets Ep168: Lululemon and FedExMagic Markets2024-03-28T00:36:15+02:00

Under Armour: Underperformer

Magic Markets2024-03-20T20:33:26+02:00

Under Armour is a bit like ordering Nike on Wish. As the joke goes, you aren’t quite getting what you thought you paid for. The business operates in the apparel market, yet it has struggled to gain proper traction with consumers. The leadership of the group is now in disarray, after the sudden departure of the CEO and the return of the founder to that role. Is Under Armour truly broken, or is this an interesting speculative play?

Under Armour: UnderperformerMagic Markets2024-03-20T20:33:26+02:00

Magic Markets Ep159: Crocs and Birkenstock

Magic Markets2024-01-24T21:34:12+02:00

In this episode of Magic Markets, we dug in the back of our cupboards for the shoes we are too embarrassed to wear. Perhaps we just aren’t fashionable enough, as there are many celebrities wearing Birkenstocks. As for Crocs, there are few who would put those on a pedestal for beautiful design. Moe covered Crocs in this show, starting with a recap of some of the points we covered when issuing our Magic Markets Premium report on Crocs some time ago. Ghost took on the responsibility of Birkenstock, which executed its IPO just a few months ago. Of the two ugly shoe contenders, which one is a buy? And does Birkenstock make a decent case for itself to be covered in Magic Markets Premium at some stage? Listen to this podcast to find out.

Magic Markets Ep159: Crocs and BirkenstockMagic Markets2024-01-24T21:34:12+02:00

Abercrombie & Fitch: From Abs to Riches

Magic Markets2024-01-17T21:46:43+02:00

Abercrombie & Fitch is proof that a retail leopard can change its spots – and its entire brand for that matter! There was a time in the world when this business was famous for having shirtless men helping in the stores. That business model aged about as well as the washboard abs themselves: i.e. not very well at all. Today, the brand has much broader appeal and the results are clear for all to see, with the share price up more than 250% in the past year! Is there any value left in it, or can we only learn lessons here about how well a retailer can be turned around?

Abercrombie & Fitch: From Abs to RichesMagic Markets2024-01-17T21:46:43+02:00

Magic Markets Ep155: Lululemon and SA Fashion Retail

Magic Markets2023-12-10T20:23:44+02:00

Welcome to episode 155 of Magic Markets. This week, we’re talking about fashion retail. Moe is representing the global north with his choice of athleisure brand Lululemon, while Ghost is keeping things more general with a selection of South African fashion retail brands including The Foschini Group and Mr Price.

Magic Markets Ep155: Lululemon and SA Fashion RetailMagic Markets2023-12-10T20:23:44+02:00

TJX: Black Friday Every Day

Magic Markets2023-11-22T21:52:54+02:00

Could TJX be the best retailer you've never heard of? With a regional moat that executes off-price retail with great success at scale, we really like this company. The valuation has run hard though, so what does that mean for entry tactics?

TJX: Black Friday Every DayMagic Markets2023-11-22T21:52:54+02:00

Foot Locker: More Like Hurt Locker

Magic Markets2023-08-31T04:06:36+02:00

Foot Locker is a perfect example of a business model that has been cracked wide open by a shift in the value chain. After previous management allowed the company to become a glorified Nike store, the new team is being forced to cut back on Nike because of that company's direct-to-consumer strategy. This creates plenty of uncertainty and a need for a turnaround strategy, which is why the dividend has been suspended.

Foot Locker: More Like Hurt LockerMagic Markets2023-08-31T04:06:36+02:00

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