Is Lululemon more than a passing fancy?
This once-trendy name is facing headwinds, and it will struggle as it continues to mature.
- The company's products had a major manufacturing defect, which led to a huge and costly recall.
- The company's former CEO has been trying to leave and is only sticking around because a new successor hasn't been found.
- Efforts to get fresh inventory on the shelves is likely to lead earnings per share (EPS) results in the October quarter to be flattish, in contrast to many quarters of solid year-over-year profit comparisons in the past.
- Though shares have pulled back a bit recently, they are still up nearly 400% from four years ago.
Yeah, I like the girl also --- much more than the apparel.
BTW, I think that this company is on its way out, just the same as all fads, including Facebook, Twitter, Linkedin, etc. Fads all have a short half-life and eventually give up the ghost when people get tired of them, and all of these are fads. People eventually get tired of wasting time and money on them and look for the next useless fad. My advice, if you have any money in them, grab it and run ASAP for the nearest exit.
Remember Lulu's John Galt bags?
Maybe Lulu and Abercombie and Fitch should merge to create the ultimate Conservative's Apparel Brand....both are overpriced and exclusive, and have wingnut CEOs
Personally Dave, I think that is a nice looking pair of black spike heels...Oh yeah, not a bad butt either.
Think my B-i-Law did fine on CROX at one time, I just made about 10-12%...
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These companies won't soar like other plays in the sector, but they make for great income sources.
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