3 Reasons to Buy Lululemon

In the video below, Fool analysts Isaac Pino and Jeremy Bowman discuss high-end retailer lululemon athletica (NASDAQ: LULU  ) and why investors might consider buying the stock.

The company's potential for growth is enormous, Jeremy says. It has only about 200 stores worldwide, mostly in North America. With plans to move into Asia and other markets, Jeremy sees that number easily doubling or tripling in the next five to 10 years.

The company has been very strategic about its moves into new markets and building up the brand ahead of a move. Lululemon is also developing a new clothing line, ivivva, targeting girls ages 5 to 12, with dance-inspired clothing. It's a smart extension, Jeremy says.

E-commerce has also been an area of growth for Lululemon. Online sales now make up about 15% of the company's sales, but they have been growing at a fast rate, almost doubling each of the past few years.

Lululemon has returned more than 95% since Motley Fool superinvestor David Gardner recommended it in his Rule Breakers service in 2010. David specializes in identifying game-changing companies like this long before others become keen to their disruptive potential and helping like-minded investors profit while Wall Street catches up. Learn more about how he picks his winners with a free online tour of his flagship service: Supernova. Inside you’ll discover the science behind his market-trouncing returns. Just click here now for instant access.


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