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Takeaway: Lululemon (LULU) reports earnings later this week. Here's a key indicator to watch when the company reports.

Lululemon (LULU) is set to report earnings this Thursday. The consensus is looking for a decline in the company’s same store sales over the next five quarters, which is probably accurate. But notice how on a two-year basis the expected trend hardly budges. This is the usual "extend the trend" mentality of comp modeling for the consensus.

Margin compares get easy for LULU starting this quarter, but at the same time it is comping against its biggest store growth performance in years, and is starting to invest incremental capital overseas to continue its growth curve. This is a great company with a lot of runway, but growth is getting more expensive. 

Looking Closely at LULU - Lulu Lemon