US Stores (with 10x the population) should easlily reach 300 (which is exactly the number of AAA Malls in America) then add
Int'l Stores -- Australia, UK, Hong Kong can support another 50 Stores.
3-5 years of solid growth... yes, the multiple will fall over time. But longer term, given LULU's impressive margins -- will eventually hit $15B in Mkt Cap.
Oh... and we still have Ivivva -- which could add another 150+ stores.
Mid 20's comps this quarter !! and the US Economy is tough --- things are getting much much better in the US.... just look at the housing Stocks and you will see !! and auto sales, and employment growth.
read my previous link....to "Lulu haters unite" and you will see that they have every intention of NOT growing too fast..they don't want 100's of stores...they want to get it right and so far, that is exactly what they are doing........
Your right but if we pull back next week all the bears will start touting its because of unsustainable high multiples. What a bunch of nonsense. Only a miss on earnings will take this down. Bears made the case that increased inventory would eat away margins and SSS would decline and a host of other personal assumptions. None of which has happened in fact its been quite the opposite.
FD: Closed my lulu position today. Although I think we have a good chance to run to a new 52w high, for myself its not worth the risk. If we run to 65+ I'll be looking to build a short position, if we drop to sub 55 i'll look to re-enter. Im a bull not a pig!
Growth baby... the shorts have been calling out the high p/e for years... it will contract, like Apples did, and its earnings will grow faster (like Apples did).. and all will be fine... the shorts were given a gift this fall (when a Major Market Collapse - caused the stock to fall).. meanwhile the fundamentals at LULU remained Strong.
Every landlord in the US wants LULU in their mall -- it drives Traffic.. and soon they will want an Ivivva store. LULU is in a great position to negotiate very favorable lease terms. ie. margins will stay high !