Friday, December 13, 2013

With So Much Competition, What's Lululemon Worth?

By Dee Gillpeace

If you're a holiday shopper trying to buy yoga pants for that someone special, the incredible selection this year should delight both your fashion sense and your budget.

If you're an investor hoping to make money on yoga pants, that sudden abundance of choice in this once esoteric product should look pretty scary.

Shares of Lululemon Athletica Lululemon Athletica, the high performing retailer that made yoga pants both stylish and expensive, have never been more vulnerable.

LULU Chart

LULU data by YCharts

Lululemon made its shareholders incredibly wealthy by opening high-end athletic apparel stores with a particular focus on yoga. With a loyal clientele, built both by specialized clothing and boosterism for yoga, lululemon turned athletic gear into everyday wear for women. Its same store sales topped the industry, and its stores brought in more revenue per square foot than any other apparel retailer on the continent.

LULU Revenue (TTM) Chart

LULU Revenue (TTM) data by YCharts

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