Is Lululemon Stock a Buy?
lululemon athletica (NASDAQ: LULU) has experienced tremendous growth over the years, focusing on niche categories in the athletic space, most notably apparel designed for yoga. But it has branched out successfully to other categories, including outerwear, lifestyle, and even apparel for golf. Revenue has grown from $452 million in fiscal 2009 to $3.98 billion in fiscal 2019.
Before the coronavirus pandemic, the company was firing on all cylinders, pointing to a massive growth opportunity. Revenue increased by 21% last year, led by surging online sales of 35%. Even with sales down after stores closed due to COVID-19, investors are not phased.
The stock is up 33% year to date and trades at a high price-to-earnings (P/E) ratio. I own shares, which currently comprise 4% of my holdings. While I'm content with my holding and I'm not adding more shares at these highs, I'm certainly not selling. My reasons for sticking with it might be another investor's reasons to take the plunge.
Source Fool.com
