Lululemon Shareholders Turning Sour On Stock?
Lululemon shareholders seemed to make lemonade yesterday after that initial sell-off. But on day two of the story, the sentiment seems to have drifted back to sour lemons. Whether it was short-covering or new money jumping into the market, I'm not sure. Today short sellers are back betting against Lulu's company. Short interest in LULU shares is at 1.16%. We'll see where the stock ends by the end of the day.
The company still hasn't responded to CNBC's inquiries and requests for them to come on and set the record straight regarding the controversy over whether or not seaweed is actually included in its VitaSea product line.
According to published press reports, late yesterday the company did issue a statement saying that its products "go through rigorous testing including our VitaSea fabric and that process has been in place for a year." The release also said that Lululemon is, "taking this situation seriously and will provide full information to further clarify this matter as soon as we receive it."
For some reason, despite repeated call and emailed requests, Lululemon's p.r. and i.r. teams did not pass this release on to CNBC. (I did think it was important to provide their take though which is why I cite news reports above.) Keep an eye on their web site to see if any official statement is released to shoppers. www.lululemon.com.
Also, take a look at who has been sitting on the board of Lululemon since October: Former Starbucks CFO Michael Casey. Obviously this blog wasn't the first publication to mention the Starbucks/Lululemon connection.
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