👟📈 LULU FASHION ANALYSIS
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The share of Lulus Fashion attracted attention. The reason for this is better-than-expected figures, which could put the stock into a rebound movement given the battered chart. In this regard, Q4 revenue rose 78% year-over-year to $96.76 million (consensus: $92.75 million). EPS of -$0.03 was also better than the expected -$0.07. The company is a newcomer to the stock market and the company is a fashion brand specifically targeting Millennial and Gen Z women. In this regard, this concept seems to be well received, which could be observed in the past quarter by the increase of an average order value from 103 to 125 USD. The products are mainly popularized via the Internet, via social media and via the company's own platform. The company recently had over 2.8 million active users (previous year: 2 million) and more than 7.5 million social media followers (year before: 5.5 million) and thus continues to be in a growth phase. Globally, the company is benefiting from the strength of the consumer trend.
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Since 01.04.2022 the stock is consolidating within an area ranging from $8.14 - $7.05.
WHAT DO I EXPECT NEXT?
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I can imagine that the Lulu Fashion stock will continue to consolidate within the range and might break out of its consolidation channel as soon as the entire market has strength. If the stock moves above $8.14 with higher than average volume, it might be beneficial to buy the stock. When the stock price closes below its temporary low at $7.05 the trading scenario is invalid.
What are your thoughts? Leave a comment down below 👇
🚫 No investment advice, I am just displaying my personal opinion which might be wrong!
