lululemon Faces Pressure But Stands Out With Profit And Expansion

Summary

• lululemon's recent stock correction creates a compelling entry point for GARP investors, given its strong brand, margins, and global growth potential.
• Despite tariff headwinds and softer US sales, lululemon maintains robust profitability, a healthy balance sheet, and double-digit international expansion.
• The company’s premium valuation is justified by its operational excellence, innovation, and long runway for growth, especially outside North America.
• I rate lululemon a 'Buy' for investors with a 2–5 year horizon, as risks are manageable, and the current valuation is attractive for quality growth.

Joe Hendrickson

lululemon (NASDAQ:LULU) is a powerful brand with a strong customer base, excellent margins and a strong growth rate. Since its founding in 1998, it has grown from a Vancouver-based yoga apparel retailer to a global player in the athleisure segment. Its stock price

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.