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    • Will Someone Please Explain Lululemon's Outrageous Valuation? [view article]
      This article is a perfect example of someone trying to make a financial decision on a company when they clearly do not understand anything about the product and culture of a company. First, this is not a niche clothing retailer; unless of course you consider women (52% of the population) as a niche market. Second, people label Lululemon as "yoga apparel" when it is clearly (and self-proclaimed) as "yoga-INSPIRED apparel". Third, people point out the fact that many of the articles of clothing are form-fitting which clearly shows that they have never gone into a Lululemon store to see the people trying on and, in the end, buying their products. The people that this article refers to as "overweight, to say the least" actually love Lululemon for many of their loose-fitting, and highly stretchable and flexible products. Customers who are "overweight" consistantly proclaim Lululemon's product as the most comfortable everyday and leisure clothing they have ever worn. Fourth, this article also fails to mention Lululemon's large selection of MALE clothing which also attracts men of all ages, shapes, sizes, and activity levels. Fifth, Lululemon is constantly compared to Under Armour as their main competitor. However, one HIGHLY important factor is failed to be mentioned; Lululemon is a RETAILER and Under Armour is a CLOTHING COMPANY. This means Lulu does not share margins and Under Armour DOES.

      Approaching Lululemon with little or no understanding of their product, culture, and appeal and then looking at their financials can lead people to wonder why LULU is trading at the level they are. This is clearly what the author of this article has done. Walk into a Lululemon location, speak with the employees, speak with the customers, feel and try on their products. This is the only way to truly get a grasp of the potential of this company.
      Apr 21 05:46 PM
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