Vancouver-based yogawear brand Lululemon is thriving – and investors are taking note. What could other companies learn from their success?
Our favourite homegrown fitness-wear retailer got a big vote of confidence this morning from Goldman Sachs.
The global investment bank added Lululemon Athletica Inc. to its “Conviction Buy List,” or the list of the bank’s top stock picks, according to The Associated Press.
The addition sent Lululemon’s stock up 5 per cent during midday trading on the New York Stock Exchange.
Goldman Sachs analyst Michelle Tan cited Lululemon’s “compelling growth [story]” and “sector-leading annual sales growth of over 30%” as two primary reasons the bank added the retailer to the hot list.
Tan also compared the yoga apparel brand to industry staple brands, saying: “[Lululemon] fulfills a need in women's activewear apparel that parallels the need that brands like Nike and Under Armour cater to on the men's side."
Lululemon capitalizing on an unmet market need seems to be one of the secrets to its success, at least in the eyes of Goldman Sachs. Or, it could just be the irresistible combination of spandex and awkwardly named poses.
So, what can other businesses learn from Lululemon’s example? I’m sure investors as well as other businesses will study the Lululemon model much more closely, if they haven’t already.
Whatever the case, news on the continued success of one of Vancouver’s own brings on the warm fuzzies.