I think I speak for all of us when I say the following: we're familiar with Lululemon, but we have an unwritten rule to steer clear of companies that are too well-known or overly discussed online. Additionally, we’re not particularly drawn to industries where building a wide moat is extremely challenging. Achieving a strong competitive advantage in apparel is almost impossible. Nike has come closest, but even they face significant struggles.
The fashion industry, in general, is low-margin and heavily reliant on ever-changing consumer preferences. For now, we’re staying out, though it’s a business we might analyze at some point in the future.
How about Lululemon?
Hi Nick,
I think I speak for all of us when I say the following: we're familiar with Lululemon, but we have an unwritten rule to steer clear of companies that are too well-known or overly discussed online. Additionally, we’re not particularly drawn to industries where building a wide moat is extremely challenging. Achieving a strong competitive advantage in apparel is almost impossible. Nike has come closest, but even they face significant struggles.
The fashion industry, in general, is low-margin and heavily reliant on ever-changing consumer preferences. For now, we’re staying out, though it’s a business we might analyze at some point in the future.