Lululemon Athletica reported a solid quarterly result with a revenues nearly doubling and also a sharp rise in earnings driven by both, e-commerce sales and a rapid return to normalcy in the U.S. market. The athleisure giant witnessed a sharp rise in active wear and casual wear over the past few quarters and this has been a pandemic-driven trend. A big sigh of relief came in the form of a 106% rise in revenues from company-operated stores indicating that brick-and-mortar businesses are gradually going back to normalcy. It is worth highlighting that Lululemon has carved a strong niche for itself in athleisure and has also gradually expanded into the home fitness market along with companies like Peloton and Apple. We give the company an ‘Outperform’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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