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Sunday, September 13, 2026

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Lululemon: The 15-Minute Thesis

Lululemon’s North American sales, margins and legging demand are falling as Alo and Vuori gain share, leaving its brand moat and depressed valuation in question.

LULU $11B
Hated Moats 2 clicks

From X

@evantindell

Evan Tindell on X

Finally got a chance to go through the $UMG earnings... Obviously, a disappointment on revenue growth and margins, which saw the stock drop like 20%. Subscription revenue was 6.7% organically, and the street was looking for >9%. So, a big miss. Still, I think things should improve. Apple, Spotify, Amazon, and YouTube music have all raised prices this year, and a portion of that will go to UMG. CFO Matt Ellis said on the call that these prices and "better market share to start the third quarter" make them "cautiously optimistic" (really sticking his neck out there!!) that growth will improve in H2 of 2026. Interestingly, Warner Music $WMG managed to grow revenue 12% in CC and adjusted OIBDA by 24%, so clearly this is a UMG-only problem, at least for this quarter. $UMG trades at 14x earnings on a NTM basis now... this seems pretty reasonable if not downright cheap for a company that has grown EBIT from EUR 1b in 2019 to around 2b today (11% organic EBITDA CAGR). We own this through Bollore, which currently has an NAV of just above 11 EUR by my calculation vs a last price of under 4 EUR. Notably, JPM thinks new AI tiers in Spotify and Apple Music will drive ARPU growth of 300 bps per year. Their price target was 48 EUR prior to the recent earnings release...
@BrokenMoats

Broken Moats on X

$RBLX no victory laps I gave up my short a long time ago. Felt the stock was manipulated by insiders to gas monetization and trends with smash and grab tactics like grow a garden drops, etc. That policy that drove the stock higher is also their undoing as the comp trends reverse and monetization declines. But the real undoing here is that he company, and I solely would call out the CEO who has majority voting power, that it is their lack of seriousness around safety that is undoing their platform and could ultimately completely unravel their business. Most parents I talk to won't let their kids play on Roblox even if they had in in years past. They are more comfortable giving them a switch to fulfill any gaming time because of the lack of safety concerns. David had a concept and it took off, got scale, built a genuine niche marketplace and network and he continues to squander that opportunity with poor operating efficiency (see costs), awful capital allocation, and some of the worst governance of any company over a $1B I have seen by dismissing the open problems on his platform, then only after issues are very public making half attempts to put in safety controls like age verification that he touts on Bloomberg interviews the day of. Its a shame the CEO has voting control, because if you could remove him their could be potential here at current prices based of the network, cash flow and the ability to dramatically improve monetization with advertising and brand partnerships over time. But you would need a big public campaign directed at parents on Bloomberg that the company is serious on safety and protections and will clean up their user account issues, and get serious on capital allocation (one buying shares to cover dilution regardless of share price is garbage policy - have conviction, buy when its attractive, and stay out when its not). @BillAckman said he was psychologically short after he walked from Herbalife, not the same as making money alongside your conviction but the best shorts are often complicated to fully execute on. But few public companies that feel more satisfaction in going down then Roblox due to their management team and disregard for their users safety

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TSOH Weekly Roundup (09/11/2026)

TSOH weekly roundup covers Meta’s child-safety settlement, Markel’s leadership transition, Peloton’s gym strategy and an upcoming Alarm.com…

MKL $22B
TSOH Investment Research 2 clicks

Lululemon: Deep Dive Analysis

Lululemon’s Q2 revenue fell 4% and Americas comparable sales 12%, as markdowns, tariffs and activewear rivals pressure its premium apparel…

LULU $11B
Hated Moats 6 clicks
UHS · long

Universal Health Svcs INC

Universal Health Services is a profitable hospital operator whose $146 share price over-discounts an earnings-collapse scenario.

UHS $10B
Value Investors Club 5 clicks

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