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Lululemon Athletica Inc. Message Board

  • thwackamole thwackamole Dec 26, 2012 1:09 PM Flag

    Fiscal Cliff, Quality Issues

    From what I've been reading:

    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.

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