Investors were cautiously optimistic heading into the fourth-quarter earnings report from lululemon athletica (NASDAQ: LULU). While they expected strong sales growth to close out fiscal 2020, shareholders were worried about rising costs and inventory pressures that might have slowed profit gains. The yoga apparel specialist's stock also followed Nike (NYSE: NKE) lower after the footwear giant posted weak holiday season revenue.
Lululemon's Q4 results, released on March 30, settled most of those questions in a positive light. As a result, investors have some good reasons to buy this stock even if it looks expensive compared to Nike and other peers.
Owning Lululemon stock gives an investor a level of growth that's hard to find on the market. The company's Q4 results showed off that performance, as sales jumped 24% thanks to booming demand in the e-commerce channel.
Source Fool.com