🧘‍♀️ Lululemon's work-leisure win

When life gives you Lululemons... make Lululemonade. Lululemon's 400+ stores have been closed since mid-March. The yoga, spin, and pilates studios where people show off matching Lulu outfits are equally shuttered. But the corona-conomy hasn't stopped the athleisure icon:

• 33%: Online sales already made up 33% of Lulu's total sales before lockdowns started, making it well-position for a shift to full ecommerce.
• +50%: How much Lulu's online sales jumped in April (aka, mid-corona crisis) compared to January of this year.
• +200%: How much Lulu's online sales soared in April compared to April 2019.

Just as flexible as its $90 leggings... In a recent WSJ survey, 24% of people chose athletic/athleisure wear as a top-three category of what they would spend their stimulus checks on. The 24/7 stay-at-home life mainly consists of chilling, working, exercising, and sleep. Lululemon is cruising because it checks 3 of those 4 boxes:

• One legging, many leg things: Lulu clothes are athletic enough for an at-home yoga sesh, stylish enough for an Erewhon run, and comfy enough for a Netflix binge.
• The rise of "work-leisure": Lulu also leaned into styles that look like work clothes, but feel like sweats — this anti-khaki innovation helped sales of menswear jump almost 40% in the December quarter.

So, this is awkward... Pre-corona, SmileDirectClub was one of the worst-performing IPOs of 2019. The direct-to-consumer brand sells teeth-straightening aligners online (think cheaper DIY Invisalign), along with electric toothbrushes, tooth-whitening kits, and dental device cleaners. You'd think the lockdown economy would be perfect for its D2C biz model — but things are actually worse:

• In the corona-concomy, tele-everything is winning — Zoom soared on teleconferencing, Netflix is rejoicing on streaming subs, and Teladoc Health stock has more than 2X'd in the past six months.
• While telemedicine is thriving, SDC's sales growth rate plummeted from 50% to 11% in just one quarter — it also posted a loss of $107M. 
• SDC orders were down nearly 40% throughout April into May. After its disappointing earnings, SDC's shares are down a whopping 62% since its September IPO.

"Challenging times"... Mentioned twice in SDC's earnings statement. Invisalign-maker Align Technology also reported a significant earnings miss for the quarter — but that can be explained by the fact that Invisalign requires patients to actually visit an orthodontist/dentist in person. SDC is mainly direct-to-consumer, so it doesn't have the same excuse.

• Score: Boeing is awarded $2B worth of contracts to deliver 1K missiles to Saudi Arabia (after selling 0 planes last month, it really needed this).
• Big Mac: McDonald's sent its franchisees a 59-page guide for reopening their dining rooms — call it the "Mickey D Way."
• Fly: Richard Branson's Virgin Atlantic is reportedly in talks to raise over $900M to weather the pandemic storm.
• Closed: 1 out of 4 American restaurants will go out of business because of lockdowns, according to an OpenTable forecast.
• Euro: Europe promises to reopen for summer tourism — that money you spend on hotels and gelato is key for the European economy.

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• Earnings expected from DraftKings

Disclosure: Authors of this Snacks own shares of Lululemon

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