This is one of my favourite growth stories. I followed this stock (TSX: LLL, NASDAQ: LULU) when the IPO came out in 2007. I got in at $35, then watched this stock shooting up to $60's until it tanked during the recession to less than $10. Today, it is fluctuating between $37-$45 (really depending on the daily news).
This is a great Canadian brand that just started expanding in the USA, Australia, and other international markets. The company designs, manufactures, and retail yoga line of sports clothing for women and men (now they are experimenting a teenagers line in Vancouver). The fabric they use in their apparel is made of some sort of sea weed texture that they claim to be comfortable and flexible for yoga enthusiasts. Yoga or not, today women and men in Canada wear Lululemon apparel as casual sports wear. It is considered the high-end label for sports wear, and women are not afraid to be seen wearing Lululemon products when they go shopping, walking, strolling, or performing any kind of social activity. My wife tells me that Lululemon is the best, high end sports apparel, bypassing anything produced by Nike or Adidas, and the reason is that they have fantastic fabric, unique brand, and cool designs.
Granted this brand is more known in Canada, but this is why it is such a great growth story. The new CEO was a top executive at Starbucks during the time SBUX was working on converting coffee drinking into a life style. I have no doubt that Lululemon will become the SBUX of sports apparel.
The growth is evident by the quarterly reports that keep showing growing earnings, revenue at double digits, even through tough times. They are expanding in the USA, Australia at an increasing rates. The stock will continue to appreciate as this company keeps on opening new stores, and satisfying its current customers with new and innovative designs and fabrics.
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