I don't that they are going to get the same store saturation that they got in Canada. There are several other players moving into the space (e.g. Athleta), and the yoga boom is getting a bit long in the tooth -- women are moving on to other things.
LULU hasn't taken off with the college girls the way that it did in canada -- hence the lower $PSF numbers here. Likewise, the student infatuation with lulu is fading in Canada.
Finally, do you REALLY believe that they can keep their $PSF growing to the point that they are the highest in the industry for the next 30 years? Because that's effectively what you are betting on at this price. Sears and Benetton were killer retail at one point...
I believe LULU can triple their sales base to -- $3.0B -- based on 1/2 the penetration rate of Canada.
The US stores are comping way ahead of Canada (which I agree has limited growth now, except for Ivivva). US comp store sales last quarter were 30% !!!! in a lousy economy. So I do believe, US Store productivity will catch up to Canada.
The store count in the US will easily hit 250+ (every AAA mall in AMERICA will have one).
I Agree. I think a lot of the shorties on this board are underestimating lulu growth potential. There writing it off as if it's another crocs, gmcr or nflx. Athletic apparel is strong segment, especially heading into the new year, can you say new years resolution to lose weight. look at Nike for guidance.... Got go buy more calls before the close ;)