Whats your thoughts on the Lululemon IPO thats coming up... I just love their clothes, man especially in Vancouver, its all what the good looking girls wear.
my mom who always spots these trends was just talking about it. I think I might jump into it lightly to see what happens. Could find a little niche.
Lululemon Athletica raises IPO price to $15-$17/shr 18.2 million shares link: http://www.reuters.com/article/governmentFilingsNews/idUSN2424507720070724 AA30
Its niche wear, and a fad with the mainstream imo. I think that while it may be great for exercise/yoga, girls are wearing it to making their asses look hot (which is succeeds admirable... whew!) Once athletic pants are out, wont mainstream non athletic girls go back to jeans/blackpants/khakis/dresses/skirts/tights, etc. whatever the next fad is?
Also, the owner of LULU Lemon sold 49% of his stake within the last year for 108 million. Not a bad flip to make 30%+ on the private equity that purchased from him (15 x 18.7m = 280m mkt cap). The company is also selling out its 'home grown feel' by outsourcing all its production and fitting to China. I dont know what the stock will do though.
That is just what they are selling in the IPO. The market cap will be over 1 billion if they hit the new mid-point of $16. How many stores do they have? AAA30
Extra points to any IPO being led by Goldman. The financials look pretty good. (See Below) Could be another Clearwater Creek. Does anyone know how fast they're growing? lululemon athletica (LULU) Business Business Designs and sells yoga-inspired apparel under the lululemon athletica brand in 57 stores. Industry Retail-Apparel/Shoe Employees 1679 Founded 1998 Financial Data ($ in millions) Market Cap $875.4 Revenues $165 Net Income $8 *Revenues and Net Income is for last twelve months ending 4/30/07
This lulu-looney IPO will be a collosal dud. Worse than blackstone or interactive brokers. MARK MY WORDS. Keep you money out of this. Regardless of what price the IPO closes there will be a 20-30% haircut in the weeks to follow.