The Bear Case Against Lululemon Athletica Inc.: Does It Hold Up?

lululemon athletica  (NASDAQ: LULU  ) impressed Wall Street with its latest earnings numbers, but is that alone enough to continue holding shares of the company?

Motley Fool contributor Brian Stoffel has been a shareholder in the company for a number of years, but alhough the stock has performed very well since the onset of the Great Recession, there are lots of question marks surrounding the athletic-apparel company's future.

In the following video, find out why Brian is considering whether to sell his shares, and what he thinks about two of the biggest arguments investors use when talking about why they wouldn't invest in lululemon athletica.

2 stocks changing the retail world
There's no question that brick-and-mortar companies have been under a lot of pressure lately. Lululemon -- with its unique in-store experience -- has largely avoided some of the negative consequences of this shift. But that doesn't mean you can't still profit from the trend.

To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Source: MetsHat via Wikimedia Commons, Lululemon.

Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 22, 2014, at 5:48 AM, baystreetsage wrote:

    Interesting commentary. It would seem that your willingness to hang on is primarily driven by the size of your holding. Aren't there better places to invest? Attracting customers by offering free Yoga lessons may be a shrewd marketing ploy or a sign of desperation. When lululemon was opening stores in Toronto years ago there was no need for such theatrics. Now? I believe I saw a copy of Peter Lynch's book on your bookshelf "One Up on Wall Street". I believe that he would think that's it's a ten bagger and it's time to move on.

  • Report this Comment On April 22, 2014, at 12:30 PM, TMFCheesehead wrote:


    The free classes have been a hallmark of LULU since its founding.


    Brian Stoffel

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2904340, ~/Articles/ArticleHandler.aspx, 9/3/2015 9:48:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

Today's Market

updated 32 minutes ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 3:59 PM
LULU $64.95 Down -0.41 -0.63%
Lululemon Athletic… CAPS Rating: ***