Better check again. I did not use the term 'lifestyle choice.' I said that Lulu sells a lifestyle. Just because you don't choose that lifestyle doesn't mean that what Lulu is selling is not valid. I am guessing you have never been in the store nor read anything about this company. They have found a customer and they treat that customer well to the point that those customers are gladly paying for Lulu's products.
For you, it is all about the valuation and technicals. I get it. And I will agree that the stock price will come down at some point but not because the 'bubble bursts,' whatever that means. When the company either fails to execute its strategy or it moves from high growth into maturity, the stock price will better reflect the future earnings. Until then, argue all you'd like about valuation. There is definitely a conversation worth having there. You will say say too high and short, others are happy to pay this price. Whatever.
In the end this is a solid retail company with an excellent strategy. As someone who has worked in this industry for many years now, Lulu is not likely going away. What they do, they do very well and while competitive barriers are low, executing a strategy well is never easy. While retail is not rocket science, thos that do it well are few and far between. Right now, Lulu is doing it well.
A "lifestyle choice"? Getting married is a lifestyle choice, as is having a baby or getting divorced. Buying an overpriced leotard is not a "lifestyle choice"
Sounds like the retail version of Enron's SPV's - a convoluted way of explaining ultimately unsustainable growth , which will be apparent to all when the bubble bursts.
Yeah, I'm so desperate I made a sarcastic post on a useless yahoo chat room about a stock called LULU to a bunch of a-holers that own 3 shares. You must have some huge ego buddy. So what I shorted 4 shares, u think I'm going to go bankrupt over the trade. \
ANF got hit huge today because they said 2Q was shaping up bad. Remember LULU is one month behind so 2Q could be worse than you think.They could hammer first Q any indication 2Q not looking good watch out below.
wow. those comments show your desperation for the stock to go down. You are hoping for non events to push the stock down; not a good way to trade.
You are on the wrong side on this trade; take the gains because they will turn into losses soon.
Using the current growth rate to value a fad has always been, and always will be a huge mistake (see LA Gear). Lulumon has no barriers to entry, a fad product easily replicated by better companies and no control over supply. It will be at 0 before it is at 100 again.