Lulu times
well 6% down after a "miss" is not bad for such a high beta stock. But I am concerned for other reasons. I was in S. Calif this weekend and I was in a shopping mall and the Lulu store was shutdown! Orange County is the land of soccer moms, the main demographic for their clothes. Not a good sign.
Then, the President Day talks about "higher spending on growth initiatives." That sounds like management BS to me. They are being affected by the recession like all retailers. I think we keep a close eye on this over the next quarter and look for positive guidance, along with stronger retail numbers (overall). If that doesn't happen we should sell into strength until there's signs the the US consumer is ready to spend $120 for yoga pants.
posted by Junk Bonds @ 6/03/2008 11:35:00 PM
1 Comments:
Orange county is like ground zero for the housing bust in SoCal. Was there a breakdown with respect to US vs Cdn store sales growth? Are those trendy soccer moms in the US adopting the Lulu cult or is Canada still carrying the growth?
I would agree generally with your strategy of selling into strength if the "guidance" doesn't appear...wait now i'm sounding like a growth investor!
Maybe Day should look into opening some stores in Shanghai and Beijing? How about a deal to outfit our Olympians! Remember what that did to Roots!
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