I got very little sleep last night as I was obsessing over this election, LULU’s earnings, and a myriad of other stock and business ideas (Yes, after drinking a few IPA’s). Nothing new. The more and more work I do on LULU, the more I want to  add to my position. Today they beat, and yes their guidance was weak, but why? Well, because same store sales are expected to continue to decrease. This sounds horrible, but this is why; they do not include online sales within their brick and mortar . Their online sales grew a 109% Y/Y, yeah exactly. They have only 200 stores, but the demand for their products have exploded globally, and that shall be the next chapter in their growth. The last time I was in the always crazy busy store up on Union Street buying the lady an outfit for her birthday, there were 4 Brazilian ladies in there. Each spent over $2000, as they could not get the goods sent to Brazil.

LULU is growing in a smart and controlled way, without affecting the brand. I truly believe the sky’s the limit with them. They just started a young girls athletic and dance line, opened a store in Austraila, and have moved into mid-America with new stores in Omaha, Pittsburgh, Memphis, Baltimore, and Columbus Ohio- all college towns mind you. Per their earnings call, they have already started to penetrate global markets.

We recently launched our Hong Kong, Singapore, U.K. and EU specific websites, which gives us access to 24 markets with local fulfillment, more localized content and the ability to connect more authentically with those communities. We established third-party logistics and distribution centers in Hong Kong and Rotterdam to better serve the Asian, European and U.K. markets.

I’m telling you, the sky is the limit. Look at it right now, that’s not a downward facing dog the chart is doing. Lastly, The only retailer that beats Lululemon’s sales of $1900 per square foot is Apple. [1]

A quick note: What’s a a good subsidy to cut in order to lower the deficit? Solar, yep, why has FSLR moved like it has, 20% to the upside? It’s not a far stretch to say that it was pumped- considering the amount of short interest. As if someone was scared those subsidies were in trouble. I’m short and I am going to add, I see a close to 40% move to the down side in the future- probably through January. GRPN is about to exit stage “get kicked down the stairs to the left and right.” Watch.

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