Lululemon's eyes overseas growth
Lululemon Athletica Inc's small test boutique in Hong Kong had helped to lay the groundwork for what the yogawear maker sees as a promising growth avenue. The Canadian retailer had cast an eye on international markets even as it struggled to fill in the CEO position in the company. Lululemon had faced an embarrassing recall of its overly sheer pants products. Nevertheless, the company aimed to purse an expansion in the United State.
Even as the rewards are seen alluring, global markets could be fickle, complicated and risky.
Investors had been looking at Lululemon's successful track record and were betting it could maintain a lofty valuation and recapture some of its earlier growth. Lululemon's stock closed last Tuesday at USD73.64, a 500% increase since the company went public last 2007.
Lululemon's revenue that ended August 4 increased nearly 22% to USD344.5 million. However, the retailer said sales at stores would be likely in the mid-single digits. This was far from those days when the yogawear maker's sales growth could surpass 30%.