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Lululemon Athletica Inc. Message Board

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  • gregbent gregbent Feb 25, 2011 1:01 PM Flag

    Who understands Market Cap?

    Yes, I think you are right. It is LULU huge operating margins that set them apart. And High ROE. They generate 2-4x the Sales per foot as those other retailers.

    I don't think LULU is ever going to be MASS. They are premium priced product. But there is still plenty of room to grow.

    I agree a lot the growth is priced in - but that doesn't mean that the stock has to come crashing down. The Company can grow into its earnings.

    With over 45 Stores in Canada (at 1/10th the population of the US). The US store count can continue to grow (from only 75) for many more years to come. The Sales and Earnings will come.

    A more interesting comp is Luxury Retailer LVMH -- that trades at 9x Sales too.

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