Lululemon challenging Nike with insane sales growth

So, uh, this is weird, but it’s looking more and more like Lululemon Athletica might be one of the best brands in the world. Look, we know we each have 10 items in each of our closets, but top companies in the world? Crazy. Maybe we’re just jaded because of all the stuff that went down over the past few years. Maybe we’re plain ignorant. It’s probably the latter. Regardless, seeing a Canadian company take over the world has us feeling a very un-Canadian level of pride. But hey, we’re not complaining!

In a earnings report delivered on Wednesday, Lululemon announced a 26% increase in fourth-quarter net revenue year over year. Aided by a strong holiday season, Lululemon’s total revenue was $3.3b in 2018. As for net income, they saw a whopping 82% increase year over year. Lastly, their earnings per share beat the expected $1.74, coming in at $1.85.

If you think you can jump on their stock train, think again. The price has close to doubled since March of last year (89USD to 160USD). And with these announcements, jumped roughly 20% this month. Maybe wait things out for now.

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But enough finance talk, this isn’t Mad Money and we aren’t Jim Cramer no matter how much we yell. We think that there are a few reasons why Lululemon has seen such strong growth, and it has nothing to do with Chip Wilson. First, the market for men’s athleisure is exploding, and Lululemon has been riding that train for over a decade.

Second, Lululemon has done a great job of expanding their e-commerce channels. Pair this with a product that people actually want to buy, and what was once limited to an in-store experience is now available online.

But the big thing, in our eyes, is Lululemon’s commitment to representing a lifestyle in a non-elitist fashion. The main initiative for this is their relatively new loyalty program, where people pay a small yearly fee in exchange for expedited shipping, gifts, and access to workshops and events.

What’s another company that has a successful loyalty program? Oh, right, Amazon. Apparently, imitation is the highest-paying form of flattery.