Go West

Lululemon Athletica: Heading for Single Digits

Writer has made some good points. However, as an investment manager who just happens to live a couple of blocks from the original store, I might have some unique insight. The Lulu store in Kitsilano Vancouver is something to be witnessed. Madhouse, is the word I'd use to describe it. Hundreds of shoppers and the stuff is flying off the shelves.

An upstart competitor called "Lotus Wear" setup shop right next door and that shop seems completely empty.

Lulu is on to something that is more than just a silly trend likes Crocs. Young women (and men) in my part of the world are truly buying into the "lifestyle" that Lulu is promoting. I see young women walking around everyday with their yoga mats to the studios in Kitsilano and sporting their Lulu bags carrying their lunch to work downtown. Maybe the yoga lifestyle will never catch on on the East Coast, but if it does Lulu will continue their Starbucks like growth.

15-20 years ago, nobody ever heard of Starbucks outside of Seattle & Vancouver. This will be an interesting story to watch. Management will be key.