TSOH Weekly Roundup (08/07/2026)
Welcome to another edition of the TSOH Weekly Roundup.
Each update features a Chart of the Week, along with a brief discussion on three news items relevant to companies in the TSOH investable universe.
Chart Of The Week (from “Microsoft: Control Your Destiny”)
Three Notable Items
“Crocs Has a Trick for Dodging Taxes: a Tiny Office in Malta”
A New York Times report examining the tax optimization strategies employed by companies like Crocs, a risk I discussed in “The HeyDude Hangover” (multiple intra-entity transactions related to IP rights).
“Accounting firms present the Maltese maneuvers as legal... But the lack of a business purpose beyond dodging taxes could make them vulnerable to challenges by the IRS… By charging interest on loans among its own subsidiaries, Crocs shifts profits out of countries where it actually sells shoes and into Malta. The arrangement reduced its 2023 tax bill by $218.6 million.”
“Roblox Reports Second Quarter 2026 Financial Results”
I’ll have more on Roblox in the coming weeks, but suffice to say that Mr. Market is disappointed with the swift change in their bookings trajectory: the stock price, which crossed $140 per share in September 2025, has since fallen by ~75% from the 52 week high. As I’ve discussed for a few years now, management’s unwillingness to outline a clearer path to long-term profitability has invited outsized stock price volatility – and despite a more than 3x increase in TTM bookings over the past five years, we again find RBLX trading meaningfully below where it did after the March 2021 direct listing.
RBLX Q2 FY26 letter: “Our conviction in the ability to deliver 20%+ compounded top line growth over the long term has not changed. As we’ve said before, the trajectory of this growth will be non-linear due to the inherent variability of our business and the timing of investment necessary to scale… We are accelerating our previously announced transition to quarterly-only guidance by one quarter, issuing guidance for Q3 FY26, but not the full year. Given our long-term focus we do not believe annual guidance is a helpful tool for investors. For Q3 2026, we expect revenue to increase by 4% to 10% year-over-year, and bookings to decline 14% to 18% year-over-year.”
“Lululemon Is At War With Itself”
A profile from Bloomberg Businessweek examining recent challenges and changes underway at the athleisure brand, including a new CEO hire (former Nike exec Heidi O’Neill) and an ongoing tussle with founder Chip Wilson.
“Lululemon now finds itself in a troubled spot similar to Nike, stumbling at the moment a new generation of competitors has swooped in. Alo has more than 200 stores, and it had a $10 billion valuation as of several years ago, according to PitchBook; Vuori was recently valued at $5.5 billion and operates about 150 stores. Target, Old Navy, and other retail chains have become formidable competitors at the lower end, so much so that Old Navy is contemplating spinning out standalone stores for its athleisure lines.”
TSOH Updates
Here’s the updated TSOH research list for the past six months:
Monday’s post will be an update on Peloton (PTON).
Have a great weekend!
NOTE - This is not investment advice. Do your own due diligence.
I make no representation, warranty, or undertaking, express or implied, as to the accuracy, reliability, completeness, or reasonableness of the information presented in this report. Assumptions, opinions, and estimates expressed in this report constitute my judgment as of the date thereof and are subject to change without notice. Projections are based on a number of assumptions, and there is no guarantee that they will be achieved. TSOH Investment Research is not acting as your advisor or in any fiduciary capacity.