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If You Invested $1000 in Lululemon a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Lululemon (LULU - Free Report) ten years ago? It may not have been easy to hold on to LULU for all that time, but if you did, how much would your investment be worth today?
Lululemon's Business In-Depth
With that in mind, let's take a look at Lululemon's main business drivers.
Founded in 1998 and based in Vancouver, Canada, lululemon athletica inc. is a yoga-inspired athletic apparel company that creates lifestyle components. The company designs, manufactures and distributes athletic apparel and accessories for women, men and female youth.
The company offers a line of apparel assortment, including fitness pants, shorts, tops and jackets designed for healthy lifestyle and athletic pursuits, such as yoga, training, and running as well as other sweaty and general fitness under the lululemon athletica brand name. Its fitness-related items comprise an array of accessories like bags, socks, underwear, yoga mats, instructional yoga DVDs, water bottles and other equipments.
The company sells its products primarily in North America through a chain of corporate-owned and retail stores, outlets and warehouse sales, independent franchises, and a network of wholesale accounts. The company has an e-commerce site with an aim to rapidly expand its online business.
The company has entered into license and supply agreements with partners in the Middle East and Mexico, through which they are permitted to operate lululemon branded retail locations in the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, and Mexico. They also have the rights to sell lululemon products via the company’s e-commerce websites in these countries.
Under these arrangements, the company supplies its license partners with lululemon products, training and other support. While the initial agreement term for the Middle East expires in January 2020, the term for Mexico expires in November 2026.
The company conducts its business through two segments: company-operated stores and direct to consumer.
As of Apr 30, 2023, LULU operated 662 company-operated stores.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Lululemon a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $5,851.13, or a 485.11% gain, as of June 27, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 170% and the price of gold went up 50.92% over the same time frame.
Looking ahead, analysts are expecting more upside for LULU.
Shares of lululemon have outperformed the industry in the past year. LULU reported the 12th straight quarter of an earnings surprise in first-quarter fiscal 2023, while its sales beat estimates for the fifth straight quarter. The top and bottom lines grew year over year. Results gained from the continued business momentum and innovative products. It is on track with the Power of Three ×2 growth plan. Comp growth was aided by robust traffic trends in stores and e-commerce. The company is capitalizing on the importance of physical retail and the convenience of online engagement. For fiscal 2023, it anticipates net revenues of $9.44-$9.51 billion, in line with our estimate of $9.45 billion. However, management’s commentary on elevated inventory levels at the end of the quarter hurt sentiment. Stiff competition is another woe.
The stock has jumped 9.85% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 15 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in Lululemon a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Lululemon (LULU - Free Report) ten years ago? It may not have been easy to hold on to LULU for all that time, but if you did, how much would your investment be worth today?
Lululemon's Business In-Depth
With that in mind, let's take a look at Lululemon's main business drivers.
Founded in 1998 and based in Vancouver, Canada, lululemon athletica inc. is a yoga-inspired athletic apparel company that creates lifestyle components. The company designs, manufactures and distributes athletic apparel and accessories for women, men and female youth.
The company offers a line of apparel assortment, including fitness pants, shorts, tops and jackets designed for healthy lifestyle and athletic pursuits, such as yoga, training, and running as well as other sweaty and general fitness under the lululemon athletica brand name. Its fitness-related items comprise an array of accessories like bags, socks, underwear, yoga mats, instructional yoga DVDs, water bottles and other equipments.
The company sells its products primarily in North America through a chain of corporate-owned and retail stores, outlets and warehouse sales, independent franchises, and a network of wholesale accounts. The company has an e-commerce site with an aim to rapidly expand its online business.
The company has entered into license and supply agreements with partners in the Middle East and Mexico, through which they are permitted to operate lululemon branded retail locations in the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, and Mexico. They also have the rights to sell lululemon products via the company’s e-commerce websites in these countries.
Under these arrangements, the company supplies its license partners with lululemon products, training and other support. While the initial agreement term for the Middle East expires in January 2020, the term for Mexico expires in November 2026.
The company conducts its business through two segments: company-operated stores and direct to consumer.
As of Apr 30, 2023, LULU operated 662 company-operated stores.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Lululemon a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $5,851.13, or a 485.11% gain, as of June 27, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 170% and the price of gold went up 50.92% over the same time frame.
Looking ahead, analysts are expecting more upside for LULU.
Shares of lululemon have outperformed the industry in the past year. LULU reported the 12th straight quarter of an earnings surprise in first-quarter fiscal 2023, while its sales beat estimates for the fifth straight quarter. The top and bottom lines grew year over year. Results gained from the continued business momentum and innovative products. It is on track with the Power of Three ×2 growth plan. Comp growth was aided by robust traffic trends in stores and e-commerce. The company is capitalizing on the importance of physical retail and the convenience of online engagement. For fiscal 2023, it anticipates net revenues of $9.44-$9.51 billion, in line with our estimate of $9.45 billion. However, management’s commentary on elevated inventory levels at the end of the quarter hurt sentiment. Stiff competition is another woe.
The stock has jumped 9.85% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 15 higher, for fiscal 2023; the consensus estimate has moved up as well.