I am short LULU, and I am short for the following reasons:
1. This is only an apparel store like Sports Authority or the others
2. The product(s) is great, but nothing to die for
3. The competition is increasing by the day and the margins will erode or are eroding as we speak
4. Tax season is not going to start until January 30 if we are lucky meaning that next quarter is going to be worst than terrible.
5. The prior Christmas season was bad for most retailers, and this one is not an exception although many of you think this company is like AAPL.
6. Lastly, the stock is broken, see how reacts to the recent good times.
7. Someone knows more than us because they do not want to buy it in order to move it up.
8. I will stop by the local store to see the lines or lack of it.
Remember Best Buy, Macy, and other stores with worlwide footprint selling more diverse items and important stuff have lost luster what make you think a store selling glorified yoga outfits will not come down fast and furious.
Note: I do not know if we have such a store here in Miami.
I live in South Florida and we have three stores here: Aventura, Boca Raton and a showroom on South Beach. I am an expert in lulu and I can tell you that your remarks do not make much sense. Lulu's strength is in it's brand loyalty and fast inventory. As it expands into Europe, Asia and more in the Americas, it should continue to enjoy robust growth. Competition will be a greater problem in the future but as long as lulu continues to build loyalty it will be fine. If it loses it's customers hearts, it will drop quickly and forever. Same with AAPL.
Sandman963 are you headed to the Fountainbleau on Wednesday for the LULU press conference, being an expert on LULU I am sure you are..... and I bet you are aware of all the puts lined up that expire Friday.... all bets that Christine warns....oh, she will be positive still but will have to fessup to margins sliding.... looking for a 4-6 point decline later this week. we will see.
The European and Asian expansion are suspect. I have no doubt that you and your friends where yoga pants everywhere you go in miami-dade. The culture is not the same in Asia or Europe. I've spent years living in Asia, and have spent time in every significant European country. Nowhere else on the planet is it okay - even when weather permits -- to wear your comfy gym clothes as you mill about town. (it's also okay out here in santa monica) That in and of itself will makes the LULU expansion seem suspect. Just as Chipotle's international expansion won't necessarily translate. In any event, it always strike me as desperate when MOMO stock lovers start hanging their hats on international expansion.
My friend loyalty is important, but they are not the only one in the loyalty business, in addition, people do not need sports clothes everyday. Do you remember Best Buy, Macy, Netflix, and many others which do not exist anymore. Loyalty to a brand is good, but need for the product is greater, and you do not need yoga clothes every quarter.