Lululemon Stock — I’m investing in Lululemon (A quick look at Everything that Makes LULU so Amazing)

The Pillars

So, back in 2019, Lululemon listed three primary goals for the following years — innovation, expansion, and guest experience. And a quick glance at the numbers is all it takes to see that they’ve massive progress.

Why I believe in the future of Lululemon

Lululemon has demonstrated the ability to grow and deliver solid and consistent results. Or, in other words, this is exactly the type of stock that I, as a long-term investor, am looking for. They’re already halfway to reaching the goals they set out to achieve, and they’re not even near done with the new stuff. They’ve also got a brand-new product line in the works — their first-ever shoe line, scheduled to make an appearance by the end of this year and is expected to hit the stores in early 2022.

The potential problems

  • There’s absolutely no way to predict how things will go on the shop front. They might do exceptionally well because of their strong brand presence, but they might also mess up with the logistics and manufacturing.
  • Even if everything goes great, their shoe lines are almost guaranteed to bring in lower margins compared to clothing. Diversification is great and everything, but it’s unreasonable to believe that the company will somehow 10x its value overnight or something.
  • When it comes to companies like Lululemon, brand image and public perception are everything. If the management or marketing teams make some big mess-up, everything could go south really, really fast.

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Entrepreneur and eco-friendly enthusiast. I’m on a green mission to clean up the way we live. Share the passion — follow my journey now! http://bit.ly/2FloQoQ

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Antoaneta Tsocheva

Antoaneta Tsocheva

Entrepreneur and eco-friendly enthusiast. I’m on a green mission to clean up the way we live. Share the passion — follow my journey now! http://bit.ly/2FloQoQ