It still blows, but it will rebound though may take awhile but it will retest 50. Better places to put your money.
Did someone buy CROX today? You really should wait until summer to buy shoes with holes. The reason to buy CROX is people feel good wearing those shoes and showing how much money they made from the stock. That won't be the case any more, the shoes now looks old, out of fashion and costed a lot money, Do you still want to wear it?
WRONG. Crox was a one trick pony. Plastic shoes that caught on quickly and overnight became a "must have" item. Just as they caught on quickly, they fell out of favor quickly. That's the nature of a "trend" item. LULU produces for a market specific "niche", performance clothing products for exercise (see underarmour, columbia sportswear, et al). They will thrive as long as their clothing is decent and they market properly just as other specialty clothing manufacturers do. On the other hand, most of the people who got caught up in the buying/selling frenzy of a stock that dumped almost 50% in a week, don't understand the market and maybe deserved to take it in the @$$.
In the bay area there is a lululemon store and it is always empty. I almost never see anyone buy anything or leave with anything even in the midle of the day. I walk by the store and it is essentially vavent except for the employees. Also, they have a prime most expensive location so the rent must be very high. LULU is gonna tank. its already well off its highs of 60, and much lower 2 come. in terms of growth LULU is no AAPL or RIMM
Please do some research before you bash a company. #1 They haven't "fallen out of favor" If you call 140% y/y growth "out of favor" then ok. Companies don't grow 200% forever. #2 CROX dissapointed with guidance and the market reacted harshly on a stock that was up huge for the year. It now trades at a very favorable forward PE for 35-40% growth. #3 Plastic shoes (they aren't even plastic) ... they are branching out into many other areas and you are going to start seeing some pretty fashionable stuff from them coming up... the YOU line is just the start.
I did not bash a company and certainly did my research. You on the other hand did not respond to MY POST. Everything I said is accurate. The stock tanked because people suddenly got their expectations in line with reality, or like you said, a "normal" p/e, and realized how ridiculous it is, to buy wildly on the strength of one popular product. Compare their price and p/e to other more established companies, for example Microsoft. Are you a fool and you actually think crox at 40+ with one product in a highly fickle industry is a better deal then microsoft with billions in reserves, a long track record, and dozens of products aimed at every segment of the market. Get a grip. You need to do some research and look at things in a realistic fashion. When you say they haven't fallen out of favor, you betray your ignorance of market segments and what makes them tick.