How Lululemon Gained Significant Market Share Last Quarter
Despite missing analysts' consensus revenue and earnings estimates for the fiscal first quarter, lululemon athletica (NASDAQ: LULU) stock is still sitting near an all-time high at $303 at the time of this writing. That's even with the shares fetching a high price-to-earnings ratio of 68.
The growth in Lululemon's direct-to-consumer (DTC) business last quarter likely explains why. Digital revenue accelerated to 70% on a constant-currency basis and made up most of Lululemon's business last quarter.
Most importantly, Lululemon gained market share in the athletic apparel industry. During the call, CEO Calvin McDonald said, "We saw one of our largest quarterly gains in market share in recent years, according to NPD data."
Source Fool.com
