Lululemon athletica inc. (LULU)

1. Ticker: "retailer of technical athletic apparel in North America"
2. P/E = 62 for a retailer! WOW!
3. "technical athletic apparel"
4. No moat
5. US recession will hurt all retail
6. 50% of outstanding shares are short
7. leg warmers! Seriously
8. Website - look at the Duncan Peak guy - http://www.lululemon.com/
9. Institutionial Owenship, 5% Owner and Mutual Funds all Net Sellers

FINALLY THE MAIN REASON LULU Insider Trading
Total Buys $1,575,000 INSIDER SELLS: $771,298,148
NET TOTAL SALES $769,723,148
Is this a retailer? Or is it a company that was created to unload stock on FOOLS?

People who call LULU just a yoga clothing company or compare LULU to CROC or UA do not understand their customer base and the reason for its popularity.

Do yourself a favor and go to a yoga class in your area and you will see most of the women wearing Lululemon clothing, assuming there is a store in the area. Better yet, go visit a store in your area and you may realize why middle to upper income women wear Lululemon. There is virtually no competition in the yoga wear industry. Women who do yoga do not wear Nike, Adidas or UA. They will wear Lululemon if they can find it because it makes them and their a$$ look nice. In a few months when they open more stores across the US, your wife or girlfriend will be coming home with LULU shopping bags and you'll realize you failed to understand why this brand succeeded.

LULU has the ability to carve out a niche in the hign end athletic wear market that is not being address by Nike, Adidas or any other company. The brand's popularity will expand to women who do more than just yoga.

I first heard about Lululemon from one of my friends who has no fashion sense whatsoever. At a house party, he asks if I have heard of the franchise, to which I replied I have not. He then stated that the next women he asked would have at least 5 pieces of clothing from Lululemon. He was wrong; she had 12 pieces of clothing. When I inquired why it was so popular, I heard both gender's response. From the woman, "The clothing fits well" and from all of my friends, "The sweat pants make any girl's a$$ look amazing." The company has a healthy market as Yoga has become the "in" exercise, and they appear to be growing at a sustainable pace, not so fast as to implode (ala Krispy Kreme). They have recently stopped offering franchising, which greatly lowers the risk of stores deviating from the business model. I like the stock, and I like the yoga pants on my girlfriend.

Not just a yoga wear company and still seems to be very popular. Has a good chance to maintain growth and/or get taken out by larger company.

Too far, too fast. At a P/E of +20, Lulu's faddish characteristics are just too risky to take on. Yoga seems to have peaked, anyway.

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.

This is a solid company and is based on

hard financial funding and a very good clothing

line.

This stock has an unreal growth and expansion rate which looks like it might continue.

It's one of these stocks that no financial guys will see coming, but do any kind of informal survey of girls and this store seems to basically just be dominating.

Learn what the symbol looks like, go to the mall, look around at how 10%+ of all the people in the mall wear some hoodie sweater or pants or whatever else from this store. Yoga is just some gimmick it has nothing to do with it, this store is recognized as being fashionable or something.

Guys are making a mistake, this company is very smart and isn't fully in the US market yet. Expect a huge jump in profits when they enter the US.

this is another pig!!! unless they put a diamond worth 500.00 in each pair of shorts they can sell for 50.00 bucks they can tell any seaweed story they want!!! who cares if its there or not!!! yeah the stock would go to the moon if waren buffet said rubbing seaweed on your skin cured cancer but thats not gonna happen!!! if there was money in making yoga apparel!! nike ,under armour, or a mainstream company with deep pockets would control the market place!!! not luluemon athletica founded by a guy called chip!!! this stock is going to zero!!!!

One of the best companies in the world. Once they go world wide then you will see. This is the really deal. There is lines up in their stores.

Chicks dig yoga.

In the short term, I think this stock will take a nice bounce to the upside. I am looking for a nice 20% pop from today's prices.

I also believe this stock has excellent upside potential in the longer term. The company seems to be doing the right things (addressing their market, managing the financials, etc.).

Their marketing efforts are impressive. They create a buzz in every new market they go after. They also have one of the highest sales per square foot in retail. They haven't covered that much area, so they have plenty of geography to cover while taking advantage of this fashionable trend in yoga.

National growth story, high priced trendy athletic wear, very successful in Canada and expanding throughout the US.

yoga is just breaking the ice into the international world. In places of high stress and work like Asia and the U.S., yoga is going to be a major player among the wealthy for coping. you will have lots of women who are either big money makers themselves or married to big moneymakers who are going to want to want to be part of this trend, and lulu has a head start. the clothing fits snug and makes even the most shapeless body have curves. its not only comfortable, but its vain too.

No debt. That is certainly the way to enter this bear phase. While anyone can point out that the YOY growth is excellent and the gross margins and ROE are better than solid, I have little doubt LULU will outperform based on personal experience.

One a year Lululemon clears out last years stock, overstocks, etc., and they choose a different city for the sale every year. In 2008 it was Calgary, Alberta. They rented a massive venue (the Big Four), hired a ton of temporary staff, set up a dozen or more cash lines, huge communal change rooms and they opened twelve hours a day for 4 days. On day one there were 5 hour, that is FIVE HOUR, lineups just to get in and buy things. Things weren't much better on day two and it wasn't until late in the day on day 4 that you could arrive and make it in to shop without having to wait.

The quality of the product and overall trend in society to a healthier lifestyle suggest to me that LULU is not a passing trend and the current price is a huge opportunity.

Started out too hot, flamed out, now should have some solid growth. Its products are great and its clients are less affected by recession.

Being from Vancouver, I understand thier cult appeal among the women of this city. If they can establish their brand in the US as well as it has spread from Vancouver across Canada, this company will soar.

The largest obstacle I see is replicating the love for this brand outside of an 'active' city like Vancouver, often noted for being the most health conscious in Canada. Is the US on the same level when it comes to healthy-living? No. But there are pockets in every city, a certain demographic across the US that does satisfy this niche. The US market will never be as ubiquitously served as Vancouver, but the growth potential there for this company is still mind-blowing.

Once US investors witness the brand in action, they will buy into this stock. If you're still a doubter, take a quick vacation to Vancouver, Montreal, or Toronto sometime and check out how well these clothes make our women look.