Case 81 Lululemon Athletica

Lululemon Athletica is a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. The company aims to create transformative products and experiences which offer meaningful connections. The company offers a comprehensive portfolio of products consisting of performance apparel, footwear, and accessories which are marketed under the lululemon brand. The apparel assortment portfolio offers pants, shorts, tops, and jackets which are basically designed for athletic activities such as yoga, training, and sport activities. The company also offers apparels which are designed as fitness-inspired accessories. The design and development team sources technically advanced fabrics with innovative functional features. As a part of its vertical retail strategy, the company incorporates unique performance and fashion needs into its design process. The company offers in-home connected fitness and associated content subscriptions through lululemon Studio. By end 2022, the company operated 655 stores in 18 countries across the globe. The total monthly cumulative return for lululemon stock was 146% compared to the total monthly cumulative return of 50% for the market index S&P 500 during the period June 2018 to May 2023. The average book value as percent of market value of equity was just 6.9% during the period Jan 2019 to Jan 2023.