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re: Lululemon drops $10.54 a share in one day despite beating estimates

Posted on 9/11/15 at 12:17 pm to
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 9/11/15 at 12:17 pm to
Lulu has the same business model as those michael kors watches which explains why they are overvalued

Lululemon marketed themselves as status symbol elite yoga/athletic attire. They got huge because they created the market and they ran a scarcity business model so that there was a high demand. The issue though is that to sustain growth, they will have to sell in volume and selling in volume kills the "status symbol" aspect of their brand. On top of that, you have UA + others entering the market with quality products cheaper.
Posted by STLhog
Nashville, TN
Member since Jan 2015
17727 posts
Posted on 9/11/15 at 1:28 pm to
quote:

On top of that, you have UA + others entering the market with quality products cheaper.


Not to mention Nike ain't going anywhere and will always have "some" status.

good points on the MK stuff though. That fad died a swift death.
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