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Has Lululemon (LULU +0.3%) lost its competitive edge? With a host of retail and apparel...

Has Lululemon (LULU +0.3%) lost its competitive edge? With a host of retail and apparel companies jumping into Lululemon's niche market, the company's brand loyalty will be tested to the hilt. Gap, Athleta, and Lole could all undercut Lululemon's pricing and pressure margins. On the flip side, the entrance into the market of more players could tip off that the yoga craze is no passing fad. And with retail stores churning out an Apple-like $1.9K per square foot in revenue, LULU is still a growth story.
Comments (3)
  • Apple does 16k per square foot. That is not "apple like". Although it is a great retail number.
    11 Dec 2012, 10:11 AM Reply Like
  • A Fad , a Faze yep, just Like NASCAR, and GOLF its the new CHIC- KOOL Thing to do.... will it disappear - No -its like CROCS....
    11 Dec 2012, 11:00 AM Reply Like
  • This might be the first piece on lululemon that correctly recognizes that "competition" lends significant credibility.

     

    Also, folks who misidentify lululemon as a brand/company aligned with a fad miss that it started with people claiming it was a women's yoga apparel store. Then they launched more men's clothing. Then they went (more) global. Then they launched an efficient online presence. Then they launched a kids' brand. And now more emphasis on a casual clothes component. Further, analysts claim that three of their competitors are Under Armor, Nike and Gap. Those have ups and downs, but they aren't fads nor do they depend on fads.
    11 Dec 2012, 01:32 PM Reply Like
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