Both stores here in Ottawa are packed with young thin women buying. I've been monitoring it now for months. Anecdotal, I agree. It is true that you need to have a decent body to wear the form fitting clothing.
When you go to Goodlife, a large Canadian gym chain, the group exercise classes have a lot of women sporting clothing with the lululemon logo. Yoga is also quite popular among white collar professionals who can afford and appreciate the high product quality.
My main worry is can lulu ramp up production as they scale the number of stores and maintain product quality? If so they will print money.
I agree, the only problem with this a true growth stock like crocs was, is that it is a niche compnay that niche being in shape women, that will play well in Canada, the north east to a degree and on the west coast, but they would be wise to not open any stores in middle america and the south, the cost of the extra fabric to make 50 inch waist bands will shrink our profits, good luck to all
They just opened their big store in Seattle (before the holiday). I talked with the sales people and they said they were really, really busy. Indicated that probably beat their store projection by a long shot. It seemed to continue through the New Year.
I bought the stock b/c my wife and every one of her friends love the stuff. Every one in her yoga class is wearing it. They are offering "Get back in shape" classes for new moms at the store and bringing in local yoga people. Smart outreach for sure and it seems to be adding to sales. I hear that a lot of people are wearing the gear around the house and for a walk.
I believe in these guys. It seems to be a phenomenon with a pretty high income group of people. They shouldn't be as pinched by the tighter economy.
Good luck. Would love to hear what's happening in other stores that people visit.