1) Lululemon could be next after Crocs Collapse ( seelink to article)
2) Insider Sales The Rage at Lululemon," Insiders sold 389K shares in past 3 months (see link to article)
3) Fashions go in and out of style, but stocks need earnings to survive.
4) Stocks that rely on trends in fashion often fall short in the left side of the income statement, to the rue of those going long and the delight of those with short positions.
5) It takes much, much more than the disposable incomes of Carrie, Samantha, Charlotte and Miranda to keep a stock price high ( LULU has PE of 55 )
6). What it is in style for Crocs is going short: the short float is now 7.98%. A short float of 5% is considered high.
7) A high short float is quite the style this season for Lululemon, too, coming down the runway at 13.11%.
8) Lululemon stock is not in style with insiders or institutions, however. A high level of insider ownership and high level of institutional ownership are considered demonstrations of confidence in the company. Insiders own 0.14% of Lululemon. Institutional ownership of Lululemon is just 1.01%.
9) A high short position with low ownership rates for insiders and institutions is a very ugly ensemble' for a shareholder to behold
10) The trend is not the friend of Lululemon shareholders.
11) LULU has P/S of 11 and P/B of 17 and P/E of 55 . These ratioas are highest in LULU sector
12) there are a lot of counterfeit of LULU products made in China and sold all over the world including US.
LULU is NOT reporting accounting per GAAP
According to the 10Q of LULU << Our accounting do not include all of the information and footnotes required by GAAP for complete financial statements>>
Please tellme why LULU is reporting not according to GAAP and has P/S of 14 and PE of 56?
Basis of presentation
The unaudited interim consolidated financial statements as of July 31, 2011 and for the twenty-six weeks ended July 31, 2011 and August 1, 2010 are presented using the United States dollar and have been prepared by the Company under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information is presented in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. The financial information as of January 30, 2011 is derived from the Company’s audited consolidated financial statements and notes for the fiscal year ended January 30, 2011, included in Item 8 in the fiscal 2010 Annual Report on Form 10-K filed with the SEC on March 17, 2011. These unaudited interim consolidated financial statements reflect all adjustments which are in the opinion of management necessary to a fair statement of the results for the interim periods presented. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s 2010 Annual Report on Form 10-K.
1. Crocs has a single product on the market when it took off. The cheap shoe was a fad and sold at mall Kiosks.
3. Fashions do go in and out of style (like Crocs). This company is building itself as a name similar to North Face. They are trying to be the North Face of yoga wear. I think earnings can continue because they are marketing and targeting a segment of the population who prefer and love high end stuff compared to those who wear clothes of Nike and Under Armour. Both Nike and Under Armour have a nice product line but Lululemon customers want something with more upscale and exclusive. It may be a little snobby but they will pay more for quality and name recognition.
5. I would expect a high short position. This has been a big moving stock lately and some may be hedging a position expecting a sell off.
8. Mgr owns 11% according to 11/7 issue of IBD. It also made mention that "retailer's fund ownership showing fast gains" ... That's an encouraging sign.
11. There are fake products of everything out there. I'm not sure the demand is high for lulu products with the masses yet, meaning the lower and some middle class. most stores are isolated in higher end neighborhoods. Most people outside of these communities have no idea who lulu is, yet.
It will be interesting to see if this company keeps their high priced products going forward or if they try to come out with some cheaper alternatives to reach and sell to a larger population. I see them staying the course for now but they could possibly offer cheaper styles once profits start to slip. For now they will keep opening stores out in wealthier areas.