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Why Lululemon's (LULU) New Men's Campaign is Crushing it

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I appreciate honest marketing. Don’t lie to me what hotel I stay at will make me smarter or that my body spray is going to make me irresistible to women. My beard already does that,  #beardgamestrong. Just tell me like it is and get to the point. Put razors on your shoes and cut to the chase. Why should I buy your pants over any other brand?

Lululemon (LULU - Free Report) has a new marketing campaign for their men’s line they are dropping right down in front of you. They call it their ABC Gear. Nope, it’s not that. Here it’s A, anti, B, ball, C crushing. Anti-Ball Crushing. According to the company, The gear’s construction is designed for mobility, giving you freedom from unnecessary adjustments. Leave the boys be.

This reminds me of the Duluth Trading (DLTH - Free Report) campaign where they sold those “Ball Room Jeans.” Although at least Duluth gave you a double entendre and room to crouch without singing soprano. Here Lulu is letting it fly in your face. Hats off to Lulu for trying to solve the world’s problems two at a time. I’ve got a few other ideas for you to while you’re at it. Can you fix the summertime swamp situation?

These are uncomfortable topics but we may as well air them out right now. This is a ballsy move on Lulu’s part but things have gotten hairy on the women’s side of the business with stiff competition from Nike (NKE - Free Report) and Under Armour leading to shrinking sales. However, on the Men’s side, revenues were up 21% last quarter. The Men’s business accounts for about 15% of total sales. Over the next 5 years, the Men’s side could reach $1 billion and 25%. Analysts juggling both parts of the business still aren’t convinced.

Over the last 30 days, one has raised but ten have dropped their earnings estimates for the current quarter, causing our Zacks Consensus Estimate to droop from 39 cents to 38 cents per share. Hasn’t crushed our Zacks Rank here though, we’ve got LULU as a Zacks Rank #3 (Hold). Not going to lie, I’m very intrigued by Lulu’s campaign. I’m going to grab a pair myself and even show them off for you. So Lulu, if you’re listening, ask yourself one question, “What about Dave?” I may even have to check out their Men’s only location in Soho and see for myself.


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