Say what you will, but lululemon athletica
Don't take my word for it. Pull up a quote on Yahoo! Finance and check out the "People viewing LULU also viewed" data. With the exception of UGG boot maker Deckers Outdoor
If you're hungry for even more proof, just pull up this morning's quarterly report.
Revenue soared 53%, to $245.4 million at the seller of high-end athleticwear for women, fueled by a 28% spike in comps. Earnings climbed even faster, clocking in at $0.64 a share before a favorable tax adjustment benefit. Analysts didn't have a clue. They were holding out for a profit of $0.57 a share on $239 million in revenue.
This scene should look familiar to attentive Fools: lululemon has been wearing monster comps and Wall Street beats all year long. When lululemon itself told the pros to expect quarterly profits of $0.55 a share to $0.57 a share two months ago, those suckers actually believed it.
Here's a quick look at the past four quarters:
Source: Thomson Reuters.
One has to respect a company that routinely outpaces analysts by double-digit percentage margins. Its guidance for the new fiscal year isn't exactly eye-popping, explaining the stock's initial weakness today. Then again, I guess investors are making the same mistake that analysts make when they buy into lululemon's conservative prognostications.
Selling pricey fitness gear seems to be a sweet spot during this otherwise iffy economic recovery. Under Armour
The move doesn't apply to all high-end retailers. On the designer denim front, True Religion
Then again, why am I even pitting lululemon against premium footwear and apparel companies? Didn't I begin by saying that it isn't like the other retailers? Lululemon is a growth stock -- and a good one at that.
Do you know a hotter retailer? Prove it! Top lululemon in the comment box below.