For a stock with a take-no-prisoners valuation, the reaction to Lululemon Athletica's (Nasdaq:LULU)
sizable product recall has been quite restrained. Even with a defective
batch of the company's top product taking steam out of the first
quarter's comp growth, this company is still growing and seeing good
success in broadening its product offerings. While there is a limit to
how many missteps customers will tolerate from a company selling
premium-priced products, Lululemon has
been relatively proactive and upfront in dealing with the issue.
Although I still believe the growth expectations here are still pretty
aggressive, investors who believe otherwise could see this as an
opportunity to pick up shares.
Please follow the link for more:
http://www.investopedia.com/stock-analysis/032113/have-see-through-pants-created-opportunity-lululemon-shares-lulu-nke-vfc-gps-ltd.aspx
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