Why Lululemon’s Best Days Are Ahead

There has been no stopping lululemon athletica (NASDAQ: LULU) lately. Over the last five years, the athletic apparel maker has nearly doubled its revenue, and earnings per share have grown even faster. While the COVID-19 pandemic led to a revenue decline of 17% in its fiscal first quarter (which ended May 3), e-commerce sales accounted for more than half its revenue for the period. That has investors optimistic about what's ahead for the brand in the longer term.

Its previous growth record reflects a brand that is knocking it out of the park with product design. But while Lululemon's core apparel assortment across yoga, training, and running gear continues to resonate with customers, there are still ways for the company to improve, address as-yet unmet needs for customers, and drive even more revenue growth.

As CEO Calvin McDonald stated during the 2019 analyst day presentation, "We're really just getting started." Even as Lululemon continues to expand into new geographies and enter new product categories like interactive fitness services, management is following a plan to expand its core assortment and drive higher incremental sales.

Source Fool.com