Why Lululemon Stock Gained 14% and Beat the Market in March
Shares of Lululemon Athletica (NASDAQ: LULU) gained 14.2% in March, according to data provided by S&P Global Market Intelligence. The stock underperformed the market average for most of the month, as analysts lowered price targets and investors seemingly shrugged off news of the company's new product line. However, it reported earnings at the end of March, surpassing expectations, which led to market-beating gains for the month.
Lululemon is know for its yoga pants that are popular among women. However, on March 8, the company announced it's officially expanding into footwear with four lines of women's shoes. While this is a new opportunity, keep in mind that Lululemon generated more than $6 billion in revenue in 2021. Therefore, shoes likely will take time to move the needle for Lululemon. And maybe that's why this news was met with a yawn from investors.
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