AWatcher

Is Lululemon Feeling the Lucy Effect?

Perhaps, but ignoring financial uncertainties (i.e. outstanding shares and if/when they will appear on the open market), I have noticed something that Lulu generally has that lucy does not; strong brand image. Now, putting aside the seaweed fiasco, lucy may have the heavy backer and perhaps the strong management at the corp holding co; however, this is a demographic that isn't necessarily going to skimp on technical sportwear to save a few bucks. Middle America (which I would not consider Texas as middle America, as can be seen from the heav ad campaigns by Ford, Chevy, Budweiser and other conglomerate brands focusing on Texas' identity as being Texan, and not 'mid-American') may not be an appropriate demographic of this type of technical wear to begin with, . .. and that's okay!

when Victoria secret expanded, it was first present in urban centers, and few doubted it's viability in areas outside of "Mid-America". What it did, in fact, was create a demand for its products. Obvious, lingerie is different from yoga wear, but in the decade of consumption being highly linked not only to image and brand, but to conscious choices, I think your comment should consider how this image conscious corporate "personality' comes into play. Sometimes, it's much easier for the spritely, alebeit eccentric company to develop wings faster than in a large-cap conservatively run organization. Yes, mroe chances to fail, but that has not yet been seen in this case unless the financials fall well beneath expectations, the market is flooded with the remaining shares, and we go well into another dip (and they take out more loans). I'd like to see your analysis on brand considerations on these two more often.