In today's world of competitive business, you need to spend money to make money. It is unrealistic to hope to make a substantial profit sitting by idly making conservative decisions. With its cash, Lululemon Athletica can either purchase more inventory which will in turn bring in more revenue or play it safe and hold on to the money in case of emergency. If they choose to do the later, the company would lose out on potential gains that would have arisen should they have invested their money in more stock. Being the popular company that Lululemon Athletica is today, they should not have any problem selling off their stock. I am all for spending more money on inventory.
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