Guggenheim’s Simeon Siegel calls Lululemon’s proxy fight the ‘friendliest’ - part 2/2
2025-12-30_16-16 • 5m 37s
Simeon Siegel (Senior Managing Director and Consumer Equity Research Analyst)
00:00.280
This
is
the
friendliest
proxy
fight,
right?
That
we're
seeing.
They're
being
attacked
by
two
different
activists
and
yet
they're
talking
to
all
of
them.
I
think
that
and
and
you
and
I
have
talked
about
this
for
a
long
time.
Lulu
is
a
very
strong
brand,
but
Lulu
is
an
Simeon Siegel (Senior Managing Director and Consumer Equity Research Analyst)
00:11.200
overstretched
brand.
And
so
my
team
has
done
this
great
research
showing
where
brands
ubiquitize,
where
we
get
over
saturated.
It's
3
to
4
billion
dollars
in
the
US.
Lulu's
6.5
is
a
lot
higher
than
that.
And
so
what
that
means
is
you
get
to
a
certain
point
where
to
continue
Simeon Siegel (Senior Managing Director and Consumer Equity Research Analyst)
00:25.160
feeding
the
growth
beast,
you
go
beyond
your
core.
You
start
trying
to
bring
in
new
audience,
new
members,
and
what
that
does
is
it
dilutes,
it
stretches
other
people
away.
And
so
Lulu
has
both
this
notion
of
everyone's
talking
about
they've
walked
away
from
the
product,
but
Simeon Siegel (Senior Managing Director and Consumer Equity Research Analyst)
00:36.540
they're
still
selling
a
lot
of
stuff.
They're
convincing
people
to
still
buy.
They
have
competition,
but
I
just
wonder
if
they're
too
big.
And
so
now
you've
got
Chip
Wilson
coming
in
with
his
slate
of
board
members.
You've
got
Elliott
coming
in
with
Jay
Nielson,
who
you
and
I've
Simeon Siegel (Senior Managing Director and Consumer Equity Research Analyst)
00:49.220
talked
about
in
the
most
glowing
terms.
I
mean,
she's
fantastic.
And
the
question
is,
what
did
she
do
in
the
past?
She
recognized
sometimes
being
smaller
to
get
bigger
is
really
important.
That's
a
very
hard
thing
to
do.
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