1) California's top tax bracket is now 13.3% With the fiscal cliff kicking in, top tax brackets go to 39.6% Add in 3% for ObamaCare, increases in capital gains, etc., and LULU's customers will have fewer $$$ to spend.
2) Quality issues: bleeding, pilling, 'miniatureized' jackets that use less material, etc., are upsetting the core lulu clientele.
3) Pricing and colors: both seemed to be poor this Q -- possibly because Chip Wilson retired and isn't running product design.
4) Supposedly the winter line isn't selling. Lots of stuff on WMTM.