Canuck Investor

Will Someone Please Explain Lululemon's Outrageous Valuation?

I read the prospectus but didn't invest went it listed. It's more than just another retailer. It has a cult following and tremendous growth potential. It could become the Starbucks of fitness wear with a devout following and very high penetration. But high-flying retailers trade at crazy valuations. I tend to avoid retailers because I dislike losing money but LU does have some real potential. It's unfortunate that it probably will never trade at a valuation that would entice me to buy. Yes, the business will grow but much of the growth is already priced into the stock.