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An earning beat and a hike in guidance from Lululemon (LULU) isn't enough to overshadow a sharp...

An earning beat and a hike in guidance from Lululemon (LULU) isn't enough to overshadow a sharp increase in its inventory total as investors sell off shares. With same-store sales still growing at a double-digit pace, Kid Dynamite wants to know why building up inventory doesn't make sense for the retailer into Q4. LULU -1.5% premarket.
Comments (2)
  • payton3499
    , contributor
    Comments (3) | Send Message
     
    Lulu will grind out the next 3 months and have a chance to push to 100 come the next earnings report. Since it's run 25% the last month it'll be hard for the stock to continue that torrid pace until after the new year.
    7 Sep 2012, 08:42 AM Reply Like
  • Kvanhoften
    , contributor
    Comments (18) | Send Message
     
    Part of the strategy and culture is a cult-ish supply and demand, so if they build up inventories, then "anyone" can have the same item (the horror of walking into a yoga class and finding someone with...(gasp)...the same yoga top!). They change and churn colors and styles quickly, which keeps existing customers coming back for the latest and ensures a fresh product mix.
    7 Sep 2012, 12:21 PM Reply Like
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