for more information contact skot@penguinstorm.com

I Am Skooter
So here's us, on the raggedy edge.
It's my father's voice dreaming of / Sailors sailing off in the morning
— Wilco, Poor Places
September 11, 2007
Public Companies Sell Stock, not Product

When companies go public, they very quickly transform from companies that make and manufacture products for consumers to companies that sell their stock in the interest of their investors. This is a necessity of the public market: if they don’t, investors flee and punish the stock. Stock price is the metric by which performance is measured.

Lululemon has gone public, and as a results it’s now selling its stock. This is a press release that will fuel a stock run, and not much else.

Lululemon stretched by demand
MARINA STRAUSS
September 10, 2007 at 9:10 PM EDT

Lululemon Athletica Inc., the Canadian yoga apparel retail phenomenon that went public in July, has run into what it calls a “class A problem”: Supply can’t keep up with demand, and its stores keep running out of products.

What is more, the 59-stores-and-growing chain doesn’t yet have the systems to keep track of just how much business it is losing by not stocking stores adequately.

It’s too soon to see the long term picture for Lululemon, but the company’s senior executives just got a bit richer today.

Posted by skooter at 5:44 AM This entry is filed under Technology, Vancouver.
This entry is tagged: Business, Investing, Politics, Vancouver

blog comments powered by Disqus