Here’s how much a $ 1,000 investment in Lululemon 10 years ago would be worth today – July 21, 2021
For most investors, the change in a stock’s price over time is important. This factor can affect your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, especially with tech giants and popular consumer stocks.
What if you had invested in Lululemon (LULU – Free report) ten years ago? It might not have been easy to hold onto LULU all this time, but if you did, how much would your investment be worth today?
Detail of Lululemon’s belongings
With that in mind, let’s take a look at the main business drivers for Lululemon.
Founded in 1998 and based in Vancouver, Canada, lululemon Athletica inc. is a yoga-inspired sportswear company that creates lifestyle elements. The company designs, manufactures and distributes sports clothing and accessories for women, men and young women.
The company offers a range of clothing, including fitness pants, shorts, tops and jackets designed for a healthy lifestyle and sports activities, such as yoga, training and running, as well as other sweaty fitness products and in general under the lululemon Athletica brand. In addition, its fitness related items include a range of accessories such as bags, socks, underwear, yoga mats, yoga instructional DVDs, water bottles and other equipment.
Notably, the company sells its products primarily in North America through a chain of corporate and retail stores, outlets and warehouses, independent franchises and a network of wholesale accounts. . In addition, the company has an e-commerce site with the aim of rapidly expanding its online business.
In addition, the company has entered into licensing and supply agreements with partners in the Middle East and Mexico, whereby it is authorized to operate lululemon branded outlets in UAE, Kuwait, Qatar. , Oman, Bahrain and Mexico. In addition, they have the right to sell lululemon products through the company’s e-commerce websites in those countries.
As part of these agreements, the company provides its licensing partners with lululemon products, training and other support. While the term of the original Middle East agreement expires in January 2020, the term for Mexico expires in November 2026.
In addition, the company operates in two segments: corporate stores and direct to consumers.
As of May 2, 2021, lululemon operated 523 corporate stores.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Lululemon ten years ago, you are probably feeling pretty good about your investment today.
According to our calculations, an investment of $ 1,000 made in July 2011 would be worth $ 6,011.61, or a gain of 501.16%, as of July 21, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 226.06% and the price of gold rose 9.40% over the same period.
Analysts are also forecasting more upside for LULU.
Lululemon shares have outperformed industry over the past three months due to strong business fundamentals combined with strong brand positioning in the sportswear sector as well as continued growth in e-commerce operations. , which also contributed to the results of the first quarter of fiscal 2021. During the quarter, the upper and lower results of the company exceeded estimates and increased year on year. In addition, the company recorded robust growth compared to the first quarter of fiscal 2019. Results derived from growth in all regions and rebound in store sales. Management noted that strong commercial momentum continued in the second quarter. In addition, its financial situation keeps it on track to achieve its Power of Three growth strategy. However, high general and administrative costs and air freight costs remain a barrier, which is expected to persist in the short term.
Shares have gained 6.74% in the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has also increased.