Athleisure

Lululemon started life as a Yoga brand. These days, it looks more like an early-stage Nike, with new product launches targeting various sports. They also have a growing men’s range, as well as an enviable global expansion track record. Lululemon is a force to be reckoned with, but that’s why it trades at such high multiples. With the share price having turned the corner after a tough year, is there still an opportunity to climb in?

Lululemon is a case study in not just retail, but the value of building out communities in the customer base and delivering omni-channel to a high standard. There's no debate here on whether this is a good business. But of course, investing is about what you get and what you pay for it. With the recent slowdown at Lululemon, the high valuation multiple suffered a nasty unwind. Is this the opportunity for investors to jump in at a better price point, or is caution still needed?