Lululemon’s shares are up 53% year to date.
Analysts are becoming increasingly bullish when it comes to Lululemon — and for good reason.
The company’s shares are up more than 50% year to date. Stifel recently raised its price target on Lululemon to $238 from $209, citing the company’s loyalty program as the reason.
But there’s more…
Athletic wear companies are taking off and Lululemon remains one of the top stocks to watch. The company is growing very quickly and has aggressive sales goals for the next five years.
3 Reasons to Love Lululemon Stock
A year ago, Lululemon’s shares closed at just over $78. This is quite a change from the company’s 52-week high of $190.52. However, here are three reasons why Lululemon is still a good investment.
Strong Consumer Demand for Athletic Apparel
The retail industry has had a rough go of it lately but the same cannot be said for athletic apparel. Companies like Lululemon and Nike have consistently outperformed the SPDR S&P Retail.
Over the last 10 years, consumer preference continues to shift toward casual clothes that are comfortable and functional. And it would seem this trend is here to stay.
And thanks to social media, fashion trends continue to change at a rapid pace. This means companies like Lululemon can release new items at a faster pace and charge full price for this merchandise.
Strong Growth in the U.S. and Internationally
Lululemon has always had a strong presence when it comes to women’s clothing. But most recently, the company has seen strong growth in its men’s line as well. Over the next five years, the company plans to double both its men’s line and its e-commerce sales.
The company also has a strong international presence and has done very well in areas like China, Europe, and Asia. Over the next five years, management plans to quadruple its international sales.
The Company Continues to Draw in Customers to Its Stores
Many consumers prefer to shop online these days so it can be hard for retail stores to draw in as many customers. Lululemon has overcome this challenge by creating a memorable in-store experience for its customers.
Currently, the company is opening its first experiential store in Chicago. The store is 20,000 square feet and will feature a retail area, yoga studio, meditation area, and restaurant. And visitors who try out a class can try out Lululemon clothing during the class for free.
