Consistency Is in Fashion This Year at Retailers – Wall Street Journal (subscription)

Most investors will pay a premium for growth. In the volatile world of retail stocks, many are increasingly willing to pay up for consistency too.

Before their 23% tumble last Thursday on downbeat guidance, shares of Lululemon Athletica fetched 26 times forward earnings estimates. That reflected expectations that sales would climb an impressive 16% this fiscal year. Now the athletic-wear maker’s sales are only expected to grow 9%, yet its multiple still stands at 22 times. For a similar multiple of 21 times investors…


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