Wednesday, October 17, 2007

Lululemon earnings boost shares by 30%

Since CEO Dennis Wilson announced Lululemon's (NASDAQ:LULU) positive 3rd quarter earnings and awesome sales outlook yesterday, shares have jumped by 30%. As brand momentum for their stylish yoga and dance clothing becomes more mainstream in US and foreign markets, growth perspectives are likely to soar. Although, one must wonder if the whole yoga trend which is religiously associated with the brand may be a fad which could eventually bring the brand under.

However, for the shorter run, the latest expansions of stores by the Canadian retailer are sure to boost future prospects, as the momentum for the brand is still relatively in its early stages within the US sports clothing market. Strong future sales figures will also be boosted by the depreciating dollar against its Canadian counterpart.

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