Ok, maybe they lose a few bucks, but they have made themselves a household name now that women are hearing Lululemon for the first time. Maybe I will try the name brand pants?
Crox is a name brand. So is Uggs. So is Abercrombie and Fitch.
Their combined market caps are less than LULU's.
At some point the market gets saturated, the styles change, new competitors enter the market and margins slip.