No. of Recommendations: 2
What Lululemon needs right now is the kind of revitalization we’re seeing at Gap...
I was watching Bloomberg TV this morning, and the banter between the regular commentators about Lululemon products caught my ear. Keep in mind that these are investing professionals, who would, one hopes, understand the companies they are discussing.
One commentator essentially came out saying that he doesn't get Lulu, that he doesn't care how good a quality product they make, he's not paying that kind of money for workout clothes. It was really clear to me that he has no clue that they make casual dress clothes for the office as well, just as I had no clue that they sold anything other than yoga leggings until I went in to check out the store from an investing POV.
What LULU needs right now is to get their message out. I love my LULU pants. Wearing them right now. Zipper pockets and absolutely perfect for travel. I would never wear these to the gym or on the pickleball court, or to go running. I also never would have learned about them if I had not been shopping for a stock and wanted to see the inside of a store. Eldest loves his LULU clothing and appreciates the effortless quality they provide. I witnessed first hand how a store he had never stepped foot into previously was able to look up his previous orders and send to his home an item of on sale clothing that they did not have on hand. He has a business trip coming up and you can bet they will be packed. We are both frugal by nature, yet we fork over the money for these products because of the fit, styling, utility and durability.
Early in investing, I learned the hard lesson that a great product does not automatically make for a great company to invest in. I rode KERA down to zero as BLCO drove them into the ground with their superior funding, but a product so inferior to KERA's that the US Airforce at the time only approved KERA's non-laser vision correction for pilots. Until LULU can figure out a way to broaden their sales to a wider demographic than the LULUManiacs, I see their stock price continuing to decline. On the other hand, LULUimitators are getting that message, and broadly marketing their version of great designs to all, even though they are not made with the fabulous Lulu fabrics. Think Athleta, which I now also own travel clothes from.
I am wondering just how long LULU will continue to be considered cool enough not to advertise to anyone other than their VIP shoppers. And frankly those endless emails alienated me enough that I quickly unsubscribed. Athleta's I still click on. How low can LULU go?
IP,
who wants to want to buy this stock, but just can bring herself to do so
