lululemon athletica inc. (LLL or LULU)

Anyone familiar with the Company or done any research on it? IPO’d over two months ago at $16. Opened the next day at $24 and within an hour was at $35. Today it’s trading at approx. $48. (20% increase over last two days due to good 3rd quarter estimate reports that came out yesterday). Company is an athletic clothing chain stores across the world. Yoga and Sports wear for women mainly. Issue is they only have 60 stores world wide; even though they are expanding quite fast. I have known the company for a while since I’ve been living in Vancouver for over 12 years and LULU is a Vancouver based company; but have not paid too much attention to them and would like to know what everyone thinks of their stock and what they value them as considering their recent success story? Thanks

i know women LOVE it! my wife can’t get over how great you look in their clothes. CNBC did a little In NYC it is starting to get pretty popular. seen some people wearing it in Boston too.

man those pants make any chicks sloppy rear end look good …thtz GOLD as far as women are concerned …those pants n TNA pants …GOD bless them …: -P

My girlfriend swears by them and is totally stoked that they just opened a store in New York recently. Personally, I have no complaints either.

i’ll jump on the band wagon here with another gf comment. before they opened a store where i live, my girl would drive for three hours to the nearest lulu store just to buy the stuff. i don’t know anything about the stock’s valuation, but knowing the “story,” i wonder if this will be a CROX kind of stock where the stock gets expensive and keeps going up anyway.

i fucking LOVE the fact that, living in calgary, women wear this stuff non-stop. if the trendiness that has made it a huge company here in Canada can translate to other markets, I could see them doing exceptionally well in the long run. $48 may still be a great time to get in on them if they take off in the states like they did here…

Dudes, this place has been HUGE in Canada for the past three years. EVERY girl back in my hometown of Saskatoon wears this stuff and to echo the comments above, they DO make any chicks @ss/legs look amazing. The stuff has taken over as fashion wear and I’ve seen plenty of chicks back home wearing this stuff out at night to bars/clubs. They outgrew their old location in S’toon in less than six months. On Boxing Day this past X-mas, there was a line a city block long to get into the store (albeit, mostly teenage girls). I remember asking their staff about franchise/expansion opps when I was in there with the Ex at X-mas ‘05 cuz I knew this was a friggin’ gold mine that hadn’t even been tapped in the States yet. She told me that I could open one for $1M and I was seriously thinking about trying to get something going with my contacts in CHI at the time before I moved back down here. It’s totally crazy that I now see every chick and their dog wearing their stuff down here. I knew about this years ago when they were just this fledgling little Van company cuz good family friends of ours have a daughter that models for them. SHe was one of the top decathletes in Canada and was plastered all over billboards in Van and Calgary a couple years ago before they had really taken off. With this news of the stock price and movements, I’m totally kicking myself that I didn’t do anything about this two years ago…or even a few months ago. The sky is the limit for buddy that owns this thing…although I had thought he sold it, cashed out and made heaps a while back. As for quality product, I got a sweet full-zip hoodie from there and I love it. A lot of the guys stuff is actually pretty cool, including the pants. It’s just so crazy to see that they’ve broken into the US and are generating the buzz that I see down here. Good for them!

They broke into Southern California a few years back and it has been a success every since. They also have stores in Japan, Singapore and a few other non North American locations. From what I hear they are opening more stores globally in 2008. The gentleman who started it has always been a very successful man. He still owns 51% of the company from what I know. The current CEO is Reebok’s old CEO who is a very bright individual. IMO-Value of the stock based on moving avg. is around $40, however long term growth potential of the company would put it at @ $45-50 range right now and I think in 2-3 years we will see this stock trading around $70 mark. Only concern I have is supply is not meeting demand for stores. Many of their stores consistently find themselves out of stock with empty shelves… So I have been hesitant to buy large lots of their stock. Just wanted to see if anyone else has any views on it? And I don’t mean about how great their pants make an ass look; I mean investment wise.

aww but the pants making the ass look great is more fun. but yes i do agree with you about their supply problem. They currently have manufacturing in Canada, China, Taiwan, S.Korea, Vietnam, Indonesia, Peru, Israel, and Thailand, according to their site. What percentage is actually made in Canada I don’t know, but if its high I could see continued problems with shortages due to the Canadian labour crunch.

^ And not to mention Canadian Dollar being so strong.

ya, obviously the strong loonie relative to the greenback makes the product more expensive in the states, but this being a premium product to begin with, I would assume that there is a more inelastic demand for their stuff. whether you’re paying $90 or $100 for a pair of yoga pants, its expensive either way…

Those pants sure are elastic, though. Ooooh!

hahahaha, nice.

Market expects stellar growth for this company and is already priced in the stock.

not to mention thier handbags seem to be flying off the shelves too …atleast here in T.O

Talk about the Devil: just had a look at the price…$52.350… hmmmmm

They’ve raised their guidance, L-F-L sales growth in the tune of 30% vs. 20% that was priced in by the market. They are generating something like $20k/sqft. of selling space which I guess is pretty high among the retailers. Has the potential to become the next CROX, or UA. Bear in mind has no sales in Europe yet. Havent seen the valuation, hope its not triple digit. I have found that when a stock makes it to the forum then its already too late (at least ST). Remember what happened with poor Jones soda for example.

It’s Kind of funny because I was thinking of purchasing some on Friday, when it was around $42 and put a Limit Buy order of $40. It hit $40.10 on Monday and yesterday the news was released and now its $52.35. Hindsight 20/20 right?!! Although I knew it would go up but did not expect such hike so fast (30% in two trading days). Now big question is: Is it too late to jump the wagon and will it keep on going up? As mentioned above the Asian market has not been touched yet and considering the clothing is very popular within the Asian community in Canada I assume there is still a lot of upside potential…what do you guys think?

Jones Soda: “After the market close on August 2, 2007, the Company announced that earnings for the quarter ended June 30, 2007 were well below Wall Street’ expectations, and that the Company’s canned products were not on enough store shelves in time for the peak summer season sales, which began during the Memorial Day weekend. As a result of this news, the price of Jones Soda stock plummeted more than 25 percent to close the following day, August 3, 2007 at $ 11.35 per share.” Now that is what I am scared of with LULU as well… Supply not meeting Demand…especially with Christmas season coming up…Or it could be the opposite after a very successful Christmas season their stock could skyrocket.

Blue Horseshoe loves these pants.