For all those wishing to suggest that the so-called "Great Recession" has permanently changed consumer spending behavior and value assessment, I would present Lululemon Athletica (Nasdaq: LULU). Here is a company that has continued to grow at an impressive clip throughout this downturn and has achieved over $200 million in quarterly revenue on the basis of convincing people to pay $100 for sweatpants (very nice and comfortable sweatpants, I'm told, but still basically just upgraded, bum-sculpting sweatpants). Now the question is how long the company can maintain the momentum in its sales and the anti-gravity in its valuation.
Second Quarter Results Very Limber
Lululemon had another startlingly good quarter from a growth perspective. Revenue rose more than 39%, with same-store comp sales up 20%. What makes that notably impressive to me is that revenue rose 35% year on year in the first quarter (with comp growth of 16%) - so even though consumer confidence and retail spending seems to be getting worse, Lululemon continues to grow apace.
To read all of the article, click below:
http://stocks.investopedia.com/stock-analysis/2011/Lululemon--Does-Success-Have-To-Make-Sense-LULU-COH-TRLG-JWN-NKE-UA-BRK-A0909.aspx
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