While lululemon athletica (LULU 0.50%) has exploded in popularity recently as a high-end retailer of women's fitness and yoga apparel, the market may expect more from the stock than it can deliver. Its sky-high valuation shows that the stock is priced to perfection, and while growth is strong for the company at the moment, being so dependent on a single fitness trend, such as yoga, is historically not without its perils. In this video, Motley Fool analyst Austin Smith tells us what the dangers can be for investors with a very pricey, trendy stock that is on the radar of a lot of competitors.
Lululemon: Why the Growth Isn't Endless
By austin smith and Eric Bleeker – Jan 15, 2013 at 7:00PM
NASDAQ: LULU
Lululemon Athletica Inc.

Market Cap
$21B
Today's Change
(-0.50%) $0.89
Current Price
$178.17
Price as of October 24, 2025 at 4:00 PM ET
Here are the threats facing lululemon today.
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A long-term investor looking to own the best businesses available.