More Haterade for Lululemon

Or fuel for the fire. You know, whatever.

Timing and Delivery: Lululemon Seaweed

Seaweed or not, I went over a bit of the background on Lululemon after it went public in the summer and talked about some of the great customer service experiences I (and others I know) have had, particularly here in Vancouver, its home market. I still think it’s a great product, but this latest story may cast a negative shadow over their marketing tactics and trust in the eyes of the consumer.

Blogging Stocks: Is it too late to short seaweed-free clothing vendor Lululemon Athletica?

I am not sure whether this news will wipe out the company, but it could be in trouble for false advertising. One customer outside a Lululemon store in Chicago said he would not stop buying VitaSea clothing, even if tests disproved Lululemon's claims. "I couldn't care less, because it is so comfortable."

I seriously doubt that this foofrah will either tank Lululemon's stock down to less stratospheric levels (come on, a P/E of 269!?), or dissuade many of the Lulu-clad fashionistas who've been drinking the Kool-Aid, but it is a corporate embarassment, and might even be the tip of the iceberg, with regard to their product claims.

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