While many investors have been excited about the incredible growth lululemon athletica 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.
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The article Should Investors Be Afraid of Lululemon? originally appeared on Fool.com.
Austin Smith owns shares of The Buckle. Eric Bleeker has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica, Nike, The Buckle, and Under Armour. The Motley Fool owns shares of Nike, The Buckle, and Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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