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Lululemon Athletica Inc. Message Board

  • frankhan2013 frankhan2013 Jul 16, 2014 1:07 PM Flag

    lulu is lose.lose

    many long investors are betting that lulu will find solutions to its many problems. so the moves they made, such as new ceo, promoting mens apparel, etc., may pay off. BUT the big problem is more competition offering essentially similar products at better price points. I sold lulu at a loss - I just don't see lulu holding on to their customers or getting new customers AND keeping their profit margins high as in the past, IMO. A buyout by a major sports company (adidas) would be preferably, but there are no other catalysts to stop the downward spiral near term.

    Sentiment: Sell

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    • lulu doesn't have a BIG problem.

    • Lol, they said the same thing about Starbucks...McDonalds and DD were shifting towards coffee, no growth, would have to lower prices. Brand is a powerful thing. Starbucks has it. Lulu is even stronger.

      Go spend a half hour in one of their stores. What you see is women coming in and 8 out of ten leaving with a lulu bag. All day long, everywhere there is a lulu. I have never seen conversion like it.

      I suspect the catalyst will be guiding higher in the weeks ahead as management starts seeing the store numbers. Remember, many lulu in Canada and northern part of US. What cold winter and they still beat the number. It's warm out now...

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