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.

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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.

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Source: MetsHat via Wikimedia Commons, Lululemon.


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  • 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:

    @baystreetsage-

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

    Best,

    Brian Stoffel

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