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.
8 comments:
So there may be a boxing day sale?
Actually, as a Canadian now residing in the US, I usually make my way up to visit my Canadian family and friends on boxing day. I've been wondering if I miss lulu sales on boxing day (I'm driving)...do they traditionally mark anything down fellow Canucks?
The Winnipeg store tends to get alot of the left over mark downs from other cities due to the ... umm excessively frugal market. The week before black Friday there were shorts from this summer for $14 and $19. There were other things marked down really cheap too but, I only had eyes for my City to yoga jacket that day. On Black Friday the prices all went up for the (non-existant) extra mall traffic.
But yeah some stores get more of the sale stuff than others based on the buying trends in that area.
Thank you Amanda!
Aw man, I love Krispy Kremes! :)
i'll help them meet their unreasonable goals by purchasing some pants released in the summer on markdown:) it's a slippery slope with markdowns though. personally, if it gets too cheap i'll lose interest. pathetic, eh?
I agree. Sometimes the mark downs are really cut totally wrong.
I wish they would come out with more brushed fleece running tops - hoods would be great. They never give us enough in the states
"I think most analysts are asshats who need to try the products before they pump them." Please stick to what you know - blogging about Lulu active wear - and stay away from making uniformed comments about economies of scale and market share. If not for the analysts' incorrect predictions and forecasts, you wouldn't be able to "look forward on getting some great deals."
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