I think you're right when you say it's not going out of business, but I don't know about it thriving. Their products are overpriced and are declining in quality (not a good combination). Vintage Lululemon clothes sell at a premium on the grey market. Upping their quality and lowering their price would be favorable to the consumer, but will hit margins. The only formula I see is for them to lower their input cost and raise their sales, but who will be the incremental buyer? Affluent areas are saturated with LULU and I don't think middle America is foolish enough to overspend on fitness wear. In conclusion, I like the old LULU products (I'm wearing a pair of their shorts right now) but I think their current PE multiple at 43 is way too high. I think a multiple of 35 until they can prove themselves again would be fair.