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Lululemon's plan of action too much - analysts

June 19
10:40 AM 2013

Lululemon Inc. said today that it has the ability to do the following: increase its size in the United States by 100 percent, create a global arm from scratch, and successfully sell $88 yoga pants to men. According to many analysts, Lululemon's plans are close to impossible.

Analysts continue to explain that there is evidence that the yoga-wear company's growth is not a guaranteed indicator of consistent progress.  The company is almost out of locations do their businesses from in North America, and competitors like Gap Inc. and Nike Inc.  have been beating the company in the past quarters.

Kantar Retail analyst Jahnia Sandford said that Lululemon's growth is "unlikely to stay on its double-digit" trend. It's a very small company, and the goals that they have are very, very big for what they may or may not be able to pull off in the next three years," he continued.

Lululemon was founded in 1998 and has been an apparel powerhouse since its entrance into the market. 

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