Lululemon Athletica Inc (NASDAQ:LULU) Stock Overview: All You Need to Know About Lululemon

History ^[1]

Founded in 1998 by Chip Wilson in Vancouver, Canada, Lululemon emerged as a pioneering sportswear brand. Originating from a daytime design studio and nighttime yoga hub, the brand quickly gained traction. In November 2000, Wilson inaugurated the first standalone Lululemon store, setting the stage for exponential growth. 

By 2011, Lululemon had achieved the significant milestone of $1 billion in sales. Renowned for its innovative approach to athletic apparel, the company became synonymous with high-quality, fashionable athleisure products. 

In 2015, Lululemon introduced Nulu, a revolutionary fabric known for its exceptional softness, lightweight feel, and remarkable stretchiness. This material became instrumental in the creation of their renowned Align pants, which garnered widespread acclaim among Lululemon enthusiasts and remained a standout product in the brand’s lineup as of September 2023. 

The same year witnessed the launch of the ABC Pant for Men, sparking media buzz for its controversial abbreviation, “anti-ball crushing.” This marked Lululemon’s foray into the men’s market, diversifying its product offerings. 

Amidst the challenges posed by the COVID-19 pandemic in 2020, Lululemon made a strategic move by acquiring Mirror, an interactive home fitness platform, for $500 million. This acquisition proved timely as it aligned with the surging demand for remote workout solutions. 

Further expanding its portfolio, Lululemon ventured into the footwear market in 2022, demonstrating its commitment to diversification and innovation in the ever-evolving realm of athletic apparel and wellness.

Lululemon’s Share Price 2024 

Here is how Lululemon Athletica Inc has been performing on the stock market for the past year:  

Lululemon Athletica Inc. exhibited notable growth throughout 2023, marked by two significant surges in its stock price. Following its lowest point of the year at $289.14 on 16 March, the stock experienced a spike to $370.25 the subsequent week, culminating in an all-time high of $516.39 just before year-end.  

In the new year, Lululemon’s stock price is trading at 9% lower than its all-time high in the last twelve months, aligning with the broader market. 

Lululemon’s Stock Price History (Annual) [2]
Year	Average Stock Price	Year Open	Year High	Year Low	Year Close	Annual % Change
2023	374.4076	323.3800	511.2900	292.9000	511.2900	59.59%
2022	321.1518	387.5600	404.6600	257.5100	320.3800	-18.16%
2021	372.0548	356.4000	477.9100	285.1400	391.4500	12.48%
2020	290.7740	233.4200	398.2900	138.9800	348.0300	50.23%
2019	180.3610	123.3500	233.1900	123.3500	231.6700	90.50%
2018	114.6959	79.6900	162.4900	76.6700	121.6100	54.74%
2017	61.1822	66.8500	79.6100	47.9100	78.5900	20.93%
2016	65.0450	55.8600	80.6500	53.9100	64.9900	23.86%
2015	60.0402	55.3400	69.7700	44.0900	52.4700	-5.95%
2014	45.2917	58.5900	59.6000	37.2500	55.7900	-5.49%
2013	69.7467	74.0200	82.2800	57.8800	59.0300	-22.56%

When Was Lululemon Athletica Inc. Listed? 

Lululemon Athletica Inc. made its initial public offering (IPO) on the NASDAQ Stock Market on 27 July, 2007. 

About the stock: Lululemon Athletica Inc 

Lululemon Athletica Inc Trading Information 

• Primary exchange: NASDAQ 
• Lululemon Stock Symbol: LULU 
• Country: U.S. 
• Currency: USD 
• Trading hours: 
  • Main: 9.30am to 4pm ET, Mon to Fri 
  • Pre-market: 4am to 9.30am 
  • After-market: 4pm to 8pm 

Business Segment ^[3] 

Sector	Industry	Market Cap (As of 6 February 2024)	Revenue (2023)
Consumer Discretionary	Textile – Apparel Manufacturing	$58.351B	$8.111B

Lululemon Inc., one of the most well known brands for yoga and technical athletic apparel, operates in the consumer discretionary sector. In 2023 alone, the stock has risen by 60%, outperforming the returns of the three key U.S. market indices ^[4]. 

Stock Split History ^[5] 

Since Lululemon Inc.’s first public listing in 2007, the company has only split its stock once in 2011. 

Stock split list ^[6]

Date	Split
12 July 2011	x2

What Could Affect Lululemon’s Share Price 

1. Competitors launching similar products ^[7]

Under Armour’s introduction of Neolast, a fabric made from recycled materials and devoid of harmful chemicals, presents a potential innovation and marketing edge over Lululemon. Neolast aims to lessen dependence on elastane/spandex while preserving stretch and comfort, a feature integral to Lululemon’s product line. This eco-friendly alternative aligns with consumer trends favouring sustainable fashion, posing a competitive threat to Lululemon’s revenue and future growth prospects. 

2. Lululemon launches mens wear ^[8]

Lululemon is set to introduce its inaugural line of men’s footwear, including a range of casual and performance sneakers tailored to male customers. Renowned for its signature “belt bags” and yoga attire, the athletic apparel brand aims to expand its men’s segment, with ambitions to achieve $12.5 billion in revenue by 2026. This move comes amidst Lululemon’s recent slower growth rate and intensified competition from established and emerging rivals in the market.

Why Trade Lululemon Stocks 

1. Lululemon adds $1 billion to its stock repurchase program ^[9]

Investing in Lululemon stocks presents an attractive opportunity due to the company’s commitment to shareholder value. With plans to add $1 billion to its stock repurchase program, Lululemon demonstrates confidence in its financial position and future growth potential. This move not only signifies a belief in the company’s undervalued shares but also highlights its dedication to enhancing shareholder returns. 

2. Lululemon partners up with Peloton ^[10]

Lululemon has signed a five-year partnership with Peloton as the primary producer of Peloton-branded fitness apparel. Access to Peloton’s extensive customer base and distribution channels could facilitate market expansion for Lululemon, while discontinuing its underperforming Mirror fitness device allows the company to refocus on its core strengths. 

Additionally, synergies between the two brands in marketing, product development, and customer engagement may further bolster investor confidence in Lululemon’s growth prospects. 

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