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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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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
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 Oct. 27, 2024, LULU operated 749 stores.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Lululemon ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in February 2015 would be worth $5,923.76, or a gain of 492.38%, as of February 14, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 191.61% and the price of gold went up 130.36% over the same time frame.
Analysts are forecasting more upside for LULU too.
Shares of lululemon have outpaced the industry in the past three months, bolstered by a raised view for fourth-quarter fiscal 2024, reflecting stronger-than-expected holiday season results. The company’s benefited from positive customer response for its merchandise during the holiday season. Following the strong holiday performance, the company estimates 11-12% growth in revenues, with EPS of $5.81-$5.85. We expect revenue growth of 11.1% year over year for the fiscal fourth quarter, with an adjusted EPS of $5.81. The company also looks well-poised for long-term growth, supported by strong momentum in the international business and initiatives like the Power of Three X2 growth plan. However, LULU continues to face challenges from the inflationary environment, leading to soft discretionary spending, and struggles in the women’s business.
The stock has jumped 5.35% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 13 higher, for fiscal 2025; 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
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
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 Oct. 27, 2024, LULU operated 749 stores.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Lululemon ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in February 2015 would be worth $5,923.76, or a gain of 492.38%, as of February 14, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 191.61% and the price of gold went up 130.36% over the same time frame.
Analysts are forecasting more upside for LULU too.
Shares of lululemon have outpaced the industry in the past three months, bolstered by a raised view for fourth-quarter fiscal 2024, reflecting stronger-than-expected holiday season results. The company’s benefited from positive customer response for its merchandise during the holiday season. Following the strong holiday performance, the company estimates 11-12% growth in revenues, with EPS of $5.81-$5.85. We expect revenue growth of 11.1% year over year for the fiscal fourth quarter, with an adjusted EPS of $5.81. The company also looks well-poised for long-term growth, supported by strong momentum in the international business and initiatives like the Power of Three X2 growth plan. However, LULU continues to face challenges from the inflationary environment, leading to soft discretionary spending, and struggles in the women’s business.
The stock has jumped 5.35% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 13 higher, for fiscal 2025; the consensus estimate has moved up as well.