lululemon Stock Rips, Airplane Stocks Freak on Iraq Issues, and Retail Sales Not-so-Hot
Bad karma has been crushing the Lulu investor's lifestyle. Last year, the "see-through" Lululemon pants caused the company more than $60 million. Then, founder Chip Wilson had to step down last fall after some inappropriate comments -- there are actually a whole bunch -- about tight black pants and women's bodies. The combo hasn't looked good on the stock.
But Lulu-faithful are confident. New CEO Laurent Potdevin, formerly of TOM'S Shoes and Burton Snowboards, admitted that sales have been slower than expected. And the company's CFO just announced he's stepping down. But the company still plans to buyback $450 million in Lulu stock, which will increase the value of the stock for shareholders.
The takeaway is that Lulu is harnessing positive energy, and now plans a major international expansion. The company plans to stretch out and add 20 stores in Europe and Asia by the end of 2017, with its first in Hong Kong early next year. Plus, it will be opening 14 pop-up stores in North America to lure new shoppers.
2. Oil stocks celebrate, while airlines suffer from Iraqi violence
Iraq is OPEC's second biggest oil producer, and this civil war could halt exports indefinitely. While the U.S. decides whether to send in the ol' fighter jets to eliminate the playing field, oil prices rose 2.4%, to nine-month highs Thursday. Oil and gas drilling companies loved the news, as their black gold is all the more precious to world energy markets.
Airlines took a beating, as increased oil prices could lead to higher fuel costs. Delta (NYSE: DAL) dove 5.4%, and Southwest Airlines (NYSE: LUV) sank 4.5% Thursday. Will these airlines raise ticket prices, reduce their profit margins, or stop giving out free peanuts (warning: these salted peanuts may contain peanut product)? All of these options don't fly with investors, so they fled airline stocks.
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The article lululemon Stock Rips, Airplane Stocks Freak on Iraq Issues, and Retail Sales Not-so-Hot originally appeared on Fool.com.Jack Kramer has no position in any stocks mentioned. Nick Martell has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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