3 Areas Lululemon Investors Must Watch

In the video below, Fool analysts Isaac Pino and Jeremy Bowman discuss some areas that investors in lululemon athletica (NASDAQ: LULU  ) must keep an eye on in coming quarters.

Same-store sales is always a key figure to watch in retail, especially with a fast-grower like Lululemon, Jeremy says. The company has left investors with nothing to complain about so far. Last quarter showed 18% growth, and growth over the past six quarters has averaged 15%. If that figure starts to shrink, it could be a red flag, Jeremy says.

Availability of the brand is a second concern. The company, which started in Canada, has begun expanding into new markets overseas. So far, it has seen good results with its Hong Kong store. That expansion will be key to its growth.

Competition is the third area to watch. Other clothing retailers have noticed that Lululemon has carved out a niche market and are coming after the company with their own athletic brands targeting women.

Those competitors could take some of that market and slow Lululemon's growth, the analysts say.

Lululemon has been a longtime pick of Motley Fool superinvestor David Gardner, and has soared more than 100% since he recommended it in December 2010. David specializes in identifying game-changing companies like this long before others are keen to their disruptive potential, and he helps like-minded investors profit while Wall Street catches up. I invite you to learn more about how he picks his winners with a free, personal tour of his flagship service: Supernova. Inside, you'll discover the science behind his market-trouncing returns. Just click here now for instant access.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2194268, ~/Articles/ArticleHandler.aspx, 9/29/2016 6:29:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:00 PM
LULU $63.51 Down -1.01 -1.57%
Lululemon Athletic… CAPS Rating: ***
GPS $22.06 Down -0.23 -1.03%
Gap CAPS Rating: **
JWN $51.78 Up +0.07 +0.14%
Nordstrom CAPS Rating: ****
NKE $53.25 Down -2.09 -3.78%
Nike CAPS Rating: *****
PVH $106.83 Up +0.46 +0.43%
Phillips-Van Heuse… CAPS Rating: ****