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Lululemon Athletica Inc. Message Board

  • halfnelson2000 halfnelson2000 Jan 4, 2013 9:15 AM Flag

    Competition

    Over the holidays shopping with the Mrs. I was in Victoria Secrets and they had a whole section of toga wear. Me wife bought several outfits where she would otherwise have bought from lulu. The quality and fabric at VS is not as nice as lulu but the price sure is.

    Sentiment: Sell

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    • got caught in the downwind today, bought before the holidays. The reason I bought is 4 people I know asked for LULU products specifically for christmas....not a yoga one in the bunch.

      I will hold on...I do think premium sells, and will continue to sell. I agree not to everyone, but that still leaves billions :)

      good luck, long or short.

      • 1 Reply to jon49trout
      • Case study of LULU is that many of their customers are middle class or upper middle class, elite class is not enough to support their large revenue estimates. However, for middle class people, saving $30 or $50 on a jacket is a big bonus. The problem for the past few years is that they are not able to find a brand that sells similar quality products as LULU offers with less price. Get ripp off or get awful stuff, most people rather to be ripp off than getting awful stuff. It changed since last year when VS, LUCY, UA, and GPS all started offer really nice and similar quality products, it usually take three to five years to start a full production line and designer line so they are catching up, I have seen more and more students at the yoga studio wear Athleta and they are super confortable. They have new stores just steps away from LULU, GPS is making inroad. LULU still has some legs, I think but it will be very tough for pricing advantage in the coming years.

    • Toga yoga; same thing ;-). The point being there is more and more competitors entering space. See Mötley Fool article today.

      Sentiment: Sell

 
LULU
44.01+0.57(+1.31%)Sep 17 4:15 PMEDT

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