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Lululemon Athletica Inc. Message Board

  • johndoolittle46 johndoolittle46 Apr 23, 2013 1:09 PM Flag

    Sheer problems not a small issue

    Funny how they keep trying to pretend that this sheer problem is not a big issue. I implore anyone to go to the lululemon website and read reviews. Obviosuly there are plenty happy with the product. Not saying they are not a popular brand and not making money. I just don't see them making that much more money over what they have already made in 5 years from now.

    But there are plenty of people who are ticked off(as recently as yesterday, and day before) regarding product issues. See, when this happens, the odds of someone coming back to give away half a days pay or more on the product gets very low. Not good, when stock price is projecting every women in America, Canada, and UK to own a pair of these guys.


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    • Give it a rest. The stock market doesn't care about PEs, earnings, EBITBAs, blah blah blah. The whole market is flush with cheap $Ben $$$s. Everything needs to be reinflated back to 2000 levels, including LULU back to over $80. This one is 100% pure squeeze, whether it recedes heavily in May is another question that cannot be answered yet. My guess is that it will hold buoyant, unless the market sells off heavily in May, in which, it would be sub-$62/sh as there will be no buyers for this stock.

      • 1 Reply to plashadpobedy
      • I don't care what they do with it in the short term, I just care that in 24-60 months this overvalued company will be back down in the 3-5B range.

        Short term shenanigans only affect the short minded.

        Secondly, your theory doesn't ring ture about ben's flush dollars. sure, you have the defensives like MCD, WMT, etc all up because their divy's give better returns than the 10 year, but there are plenty of growth stocks like Deckers that were slaughtered over the last 2 years and are just now coming back to rise. If deckers could get slaughtered over a rise in sheepskin costs that effected income for two years, any rise in costs for lululemon coupled with a rise in interest rates, coupled with these sheer issues, equals danger.

        I'm not saying Lululemon doesn't go up 20-50% from here. OF COURSE IT CAN as it is already at this ridiculous valuation. But it doesn;t mean it is sustainable. Right now earnings and growth rate are ppretending that this valuation is remotely justifiable.

        But my favorite line in the movies comes from Titanic when the ship is sinking: "Follow the rats, they'll know the way out."

        Just take a look at insider sales. These guys can't believe they are selling at the levels they are and they hold virtually nothing except what they recieved in the last 3 months.

        They ain't no fools.


    • yes i too saw many issues posted in the comments section on lulu website last week! a lot of pilling happening in their pants for example - and when people pay $100 for a pair of yoga pants, then pilling on a first washing is just not acceptable!! plus seems ripping apart too - posted on their website! this too is just not acceptable for such a high priced product!!

      • 1 Reply to stocksgirrl
      • Anyboyd can see with their own eyes, just have to go to their website and read reviews.

        Like I said, many happy customers, but way more unsatisfied customers than one would expect. At the price lululemon is charging, they cannot afford a disgrunteled customer who won't buy back, because there are only so many people who are going to choose to pay 98 dollars for yoga pants when they can buy 30 dollar sweat pants from victoria secret.

        The valuation here is just ridiculous and I am not going to even pretend for a second that there is any real reasoning behind it. Plain and simple, short squeezing, but it is offering great oppurtunity for those who have not gone short or those adding to their positions to short the company now as if the reviews are any reflection on future earnings, it ain't looking so hot.


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