Lululemon: Shareholders Cheer Q3 Results and David Einhorn Absence

Perhaps more important than the financial results and outlook was the fact that David Einhorn did not make an appearance. Rumors surfaced earlier this year that the hedge fund manger was short Lululemon, but he has not disclosed any position in the company. In an interview with CNBC, Day says Einhorn has not engaged the company.

CHEAT SHEET Analysis: Technicals on the Stock Chart are Mixed

Shares of Lululemon squeezed more than 3 percent higher on heavy volume to reach $70.75. As the chart below shows, shares have outperformed competitors such as Nike (NYSE:NKE) and Under Armour (NYSE:UA) over the past five years. However, there is resistance for the stock in the $70-$80 range, and a high-end consumer name may cause some investors to heed caution. In the fourth quarter, Lululemon expects same-store sales to rise “in the high single digits,” representing a significant decrease from last year’s 26 percent increase in fourth quarter same-store sales.

On the positive, Lululemon may insulate investors from losses better than other retailers. According to a recent report by Retail Sails, Lululemon outlets generate more cash per square foot than any other top store in the United States, with the exception of Apple (NASDAQ:AAPL) and Tiffany’s (NYSE:TIF).

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