Lululemon Athletica (LULU) Stock – Significant Growth In Five Years Pushing To Grow Further


Since the start of the year, athletic apparel retailer Lululemon Athletica Inc. (LULU) has risen more than 45 percent. Lulu’s stock was worth $336.73 at close on November 18. As the company is still in the process of expansion, this growth is not the limit.

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The widening of product lines is one of the key drivers of the success of Lululemon Athletica. If the business was previously known as a maker of comfortable women’s yoga apparel, the range now also contains men’s clothing, outerwear, tracksuits, and much more. LULU’s management has also regularly announced that it plans to bring revolutionary shoes on the market.

Lululemon Athletica saw a large rise in demand for comfortable clothes for work and sports at home in 2020, and this trend led to the launch of a new “On The Move” collection. Overall, consumers viewed almost all of the company’s new clothing positively, which indicates the great potential of the brand beyond conventional sportswear.

The Vancouver, Canada-based company is expanding its international reach in another direction. The organization has an ambitious goal of growing its global sales fourfold. In the second quarter, the international division of the company increased 37 percent year-on-year and accounted for 16.2 percent of overall sales. The company focuses primarily on the Asian market at this point and opens most of its stores in that region. It has opened eight new stores in China in the fiscal year 2020.

The COVID-19 pandemic has also shown the value of establishing a multi-channel distribution system and building close customer relationships. LULU has genuinely achieved in that direction. It has a wide community of loyal buyers, a good audience awareness that enables it to reduce the number of online order returns and retain a high e-Commerce margin.

However, Lululemon Athletica is investing in other distribution platforms, in addition to expanding the Internet market. The garment maker purchased Mirror not so long ago. A workout unit, which is a huge screen for joint fitness activities, is the main product of Mirror. Program monetization is carried out at the cost of a monthly subscription fee for admission to courses. Through the purchase, the company will get even closer to its audience and will be able to show some of its products better.

For a better display of goods and a more convenient stay for customers, LULU also aims to increase store space. The company began testing two shops in Chicago and Minneapolis in the fiscal year 2019. With departments for fitting, product testing, healthier food options, and an enhanced shopping experience, these modern store designs build a room.

Lululemon Athletica Inc. (LULU) is thus investing in new ways and new forms of consumer collections, enhancing the company’s long-term outlook. The company has plenty of space for expansion ahead, considering the stock’s 500 percent rise over the past five years.


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