Business overview
Lululemon sells fitness apparel, footwear, and accessories under its house brand. The company targets predominantly females in the North American market, selling its products through a mix of company-operated stores and ecommerce, among other retail arrangements. Despite consistent revenue improvements every quarter, the activewear retailer is still subjected to seasonality as the fourth quarter tends to be the strongest, coinciding with the holiday season. Thus, the company operates in the...It is not very often that a company posts double digit revenue growth.
Among a set of 5,000 publicly listed companies, only 13% were able to generate more than 10% revenue growth between 2009 and 2019.
Basic arithmetic suggests that each quarter of revenue expansion pushes the bar higher, making subsequent growth of the same magnitude far more difficult.
Enter Lululemon Athletica (NASDAQ: LULU), or Lululemon, the activewear company that turns the inconceivable into a reality.
We delve deeper into how this company managed to increase its topline by over 20% for each of the past ten quarters.
