Battleground stock Lululemon (LULU -0.1%) is on the radar of traders after reports from Nike and...


Battleground stock Lululemon (LULU -0.1%) is on the radar of traders after reports from Nike and Finish Line set the table for debate on valuation for sporting apparel names. Bulls point to the strong sales trends in the sub-sector, while brushing off signs of increasing competition due to the company's strong brand loyalty. Buckingham Research pitches the bear case by noting LULU trades within 5% of its 52-week high with a $11B market cap - a valuation called "absurd" by analysts.
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Comments (2)
  • Medguy
    , contributor
    Comments (123) | Send Message
     
    A lot of shorts piling on because of valuation----a number of surprises from the expanding men;s lines, international expansion (outfits flying off the shelves--visit the London and Hong Stores) and significant Internet sales and margin increases. Watch for EPS surprises and estimate increases.
    Look also for some surprising very attractive co location sales efforts. Our Christine Day has her act together-see the recent video interview:

     

    http://bit.ly/S6u8sb

     

    28 Sep 2012, 01:26 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    I guess valuations don't matter......until they matter 9x sales 40+xearnings...ne barrier to entry and lots of cheaper competition....good luck longs If u don't believe me...check out DECK
    28 Sep 2012, 01:34 PM Reply Like
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