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• 1

  robertgordman

  10/10/08 | Report as spam

  Tell Me Something Good-lululemon athletica

  Lululemon athletica is a bright story in a mainly dismal retail climate. The mission of the company is crystal clear: creating components for people to live longer, healthier, more fun lives. And it???s clear from their second quarter numbers that they are fulfilling that mission.
  
  For the thirteen weeks that ended August 3, 2008 their net revenue increased 48% to $85.5 million. Net income from operations increased 52% to $15.5 million or 18.2% of net revenue. Diluted earnings per share from continuing operations were $0.18 on net income of $12.3 compared to $0.08 for the second quarter of fiscal 2007. lululemon's sales per square foot are three to four times as much as the best retailers in the world.
  
  What accounts for these results? The clothing quality is excellent, the fit is carefully designed, the colors and patterns are flattering, and the prices reflect the effort.
  The stores are not stores; they are selling machines. lulu only puts stores in neighborhoods that have people who appreciate technical clothing for yoga, dancing and running and most other sweaty pursuits.
  I believe that even in these tough retail times, lulu will continue to prosper because their focus is on the lifestyle and interests of their Core Customer. This is an instructive lesson for other struggling retailers.

 
• 2

  robertgordman

  10/10/08 | Report as spam

  Tell Me Something Good-lululemon athletica

  Lululemon athletica is a bright story in a mainly dismal retail climate. The mission of the company is crystal clear: creating components for people to live longer, healthier, more fun lives. And it???s clear from their second quarter numbers that they are fulfilling that mission.
  
  For the thirteen weeks that ended August 3, 2008 their net revenue increased 48% to $85.5 million. Net income from operations increased 52% to $15.5 million or 18.2% of net revenue. Diluted earnings per share from continuing operations were $0.18 on net income of $12.3 compared to $0.08 for the second quarter of fiscal 2007. lululemon's sales per square foot are three to four times as much as the best retailers in the world.
  
  What accounts for these results? The clothing quality is excellent, the fit is carefully designed, the colors and patterns are flattering, and the prices reflect the effort.
  
  The stores are not stores; they are selling machines. lulu only puts stores in neighborhoods that have people who appreciate technical clothing for yoga, dancing and running and most other sweaty pursuits.
  
  I believe that even in these tough retail times, lulu will continue to prosper because their focus is on the lifestyle and interests of their Core Customer. This is an instructive lesson for other struggling retailers.