Hmm, Lulu stock is down but the revenue and profits are up. Analysts predicted higher sales than lulu delivered. Honestly, I think most analysts are asshats who need to actually try the products before they pump them. I remember when Krispy Kreme was the hot thing but if you ever ate their donuts you'd know they weren't that great. They were also a one item type of store. Not a lot of growth potential there. I think a lot of lulu's growth has been due to expansion (Christine Day's/Starbuck's specialty) but if they deliver cute designs and great fit, keep quality and customer satisfaction up, and don't become ubiquitous (and keep their products upscale - out of Costco/TJ Maxx) they should be able to be popular for a long while. I think they have potential to become the Coach of women's active wear.
The best part of this article: "Ms. Day said inventory levels, which have not been able to keep up with high demand in the past, will be at normal levels in the fourth quarter, potentially leading to a higher level of price discounting at the end of the season to clear excess merchandise." I'm looking forward to getting some great deals.