Go to the Santa Monica Promenade Athleta store...5 times (or more) the size of nearby lulu....empty cavern, poorly merchandised, and sales staff completely clueless....apparently NO training.
Lulu store must be doing 500%+ or more per sq ft of retail space...store always crowded, cash registers ringing. Only sound in Ahleta is the echo of footsteps looking and leaving...empty-handed
Good observation. The part the shorts miss (and their) competition miss is just why people love Lulu clothes so much. If it was easy to do what they do, everyone would be having the same success. Not saying it is impossible or that their lead is unassailable, but just that they are very, very good at what they do, especially the intangibles of the world's best brands.
Good observation, but leads are rarely 'unassailable' -- look what happened to Henry Ford.
Lulu has momentum, but they're going through a CEO transition, they have to hire a lot of QC people who will detract from earnings, and they really have to quintuple their revenue to grow into their valuation.
It could happen, but I can't think of another case where it has.
Six years ago ANF was killing it, and the stock price was 2 1/2 times more than it is today....