Stock splits may not have a significant impact on a company's valuation, but they can help shares become more affordable for retail investors. Furthermore, a Stock split can symbolize a company's enduring success, as a rise in share price to the point of being unaffordable signifies sustained performance over time.

Lululemon Athletica (NASDAQ: LULU), a Canadian-based apparel company, could benefit from a split as its stock is over $400 per share. Let's explore the possible implications of a stock split and whether Lululemon would benefit from one.

A stock split is a corporate action in which a company increases the number of its outstanding shares while maintaining the same market capitalization. In other words, a stock split will result in each shareholder receiving more shares, but the ownership stake and the overall value of their investment remain unchanged.

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Source Fool.com