Investopedia: Bonkers Expectations May Still Be lululemon athletica's Biggest Challenge
It looks like the momentum trade is back "on" for lululemon athletica (Nasdaq:LULU)
as investors cheered a solid second quarter and encouraging third
quarter guidance. With lululemon's comps remaining in the double-digits
and demand continuing to outstrip supply, the biggest challenge for this
company may simply be living up to expectations. Although this remains
one of the strongest-growing and most productive stories in retailing,
valuation and expectations look more than a little breathless.