The Cowen analysts call Lululemon a “dual gender brand with unmatched loyalty,” drawing numerous comparisons to Nike. “We view LULU growth, durability and ROIC [return on invested capital] profile as most [similar] to NKE,” the analysts said in the report.
They point to the company’s fabric innovation, which they say Lululemon has spun into a “massive addressable market.” They describe as “conservative” the athleisure seller’s own goal of doubling men’s apparel and digital sales by 2023 and growing its women’s sales from $2.6 billion to $4.4 billion, which would make it a peer to sportswear giants Nike and Adidas.
