3 Reasons to Buy Lululemon


In the video below, Fool analysts Isaac Pino and Jeremy Bowman discuss high-end retailer lululemon athletica and why investors might consider buying the stock.

The company's potential for growth is enormous, Jeremy says. It has only about 200 stores worldwide, mostly in North America. With plans to move into Asia and other markets, Jeremy sees that number easily doubling or tripling in the next five to 10 years.

The company has been very strategic about its moves into new markets and building up the brand ahead of a move. Lululemon is also developing a new clothing line, ivivva, targeting girls ages 5 to 12, with dance-inspired clothing. It's a smart extension, Jeremy says.

E-commerce has also been an area of growth for Lululemon. Online sales now make up about 15% of the company's sales, but they have been growing at a fast rate, almost doubling each of the past few years.

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The article 3 Reasons to Buy Lululemon originally appeared on Fool.com.

Isaac Pino has no position in any stocks mentioned. Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica and Whole Foods Market. The Motley Fool owns shares of Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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