Lululemon athletica inc. (LULU)

projectsmith (< 20) Submitted: 8/15/07 8:53 PM : Start Price: $31.95 LULU Score: 4.38

Lack of Online Sales out of the gate is a huge issue. This will come into play over and over again as the QReports roll in and investors ask.."where can we get more Money?"
Brick and Mortor is going to cost.
Commercial Retail space is at an all time High in Canada. Going out of the Franchise business means spending just as much money on Management in the coming years as the growth spurts will mean added "Middle/Regional Mngmt" in order to keep the ship right.

Then we have "trend fashion".
Women are a great market no doubt. Fickle maybe? Yoga a trend?
These things play into the fact that you will have a Nike or Adidas knock-off being marketed at another Niche level demographic market. (ie Teen Girls or College age)

Last thing. I have a GF that wears this stuff like nobodies business. Yes her A$$ looks amazing. But this time 2 years ago it was all about BENCH Clothing and her friends all bought that up.

Ralph Lauren has been doing this for a long long time. Retail outlets and a Niche Market with simple clothing....
LULU Yoga does not a Polo Make.

Report this Post Replies: 0 | Reply