John Zolidis

That, and an uptick in shoplifting, has John Zolidis, founder of consumer-focused investment adviser Quo Vadis Capital, bracing for choppy performance in retail stocks over the coming months.

“It’s a lot easier to see the bearish scenario coming to pass,” he said. “The consumer has been stronger than expected so far, so it could continue, but the environment’s working against that outcome.”

John Zolidis, a veteran retail analyst and president of Quo Vadis Capital, told MarketWatch that retailers might want to limit their expectations, noting that with so many stores looking to fill the Bed Bath & Beyond void, the sales bump might be limited for each.

In effect, the bump “is going to be dispersed,” Zolidis said.

Will LULU maintain the growth rate and margins? Zolidis, who rates the company’s shares BUY, thinks so.

“The company has kept it going much longer than nearly all others,” he said. “Bottom-line, after two years of the stock moving sideways despite consistent upward revisions to earnings, last night’s results could be the event that sets off a round of valuation expansion and vaults the name firmly back into the momentum camp. Certainly, this profile is not for everyone but for those already involved, we feel that playing for additional gains is supported by the fundamentals and outlook.”

John Zolidis, founder and president of Quo Vadis Capital, said: “The question for shareholders is whether the company can scale to profitability and positive cash flow without needing an equity raise. It’s a steep hill to climb but could be possible depending on execution.”

Please click the link to view a short excerpt from our discussion on CNBC Asia Squawk Box regarding YUM China. We discuss the company’s execution and the valuation of the shares.