While many investors have been excited about the incredible growth lululemon athletica (LULU +1.27%) has experienced, in this video, Motley Fool analyst Austin Smith offers some words of caution. He tells us that because the company is so closely tied to fashion and the yoga fitness trend going on at the moment, and these can be very fickle industries to be attached to, paying for Lululemon at its current lofty valuation to get into a fickle industry is a decision investors should examine closely. Austin also discusses some potential disruptors to Lululemon, and gives us one company he would rather invest in in the retail space.
Should Investors Be Afraid of Lululemon?
By austin smith and Eric Bleeker – Jan 16, 2013 at 12:00PM
NASDAQ: LULU
Lululemon Athletica Inc.

Market Cap
$20B
Today's Change
(1.27%) $2.09
Current Price
$166.06
Price as of November 19, 2025 at 4:00 PM ET
A few reasons for investors to be scared off of lululemon.
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