10 Best Sporting Goods Stocks To Invest In Now

2. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 45

Lululemon Athletica Inc. (NASDAQ:LULU) is involved in the design, distribution, and sale of athletic apparel, footwear, and fitness-inspired accessories. It operates through company-owned stores and direct-to-consumer channels.

Analysts have a bullish outlook on the company since the leadership expects international sales to reach half of the company’s long-term sales mix. This is significantly higher than the 25% projected for fiscal year 2024. Lululemon Athletica Inc. (NASDAQ:LULU) has shown strong financial performance recently which aligns with the company’s growth trajectory and analysts’ bullish outlook. The company’s third-quarter revenue grew 8% year-over-year to $2.4 billion, while EPS recorded an increase of 13% to $2.87.

The management has also approved a $1 billion increase to its share repurchase program, reflecting confidence in its future prospects. The company continues to see strong growth potential in the U.S. Guest retention remains high, and there is an opportunity to increase revenue per guest by offering more new products. The membership program is also growing, now with 24 million members. The benefits, including early access, partner perks, and members-only events, are well-received. Moreover, unaided brand awareness in the US is still low at 36%, presenting an opportunity for growth as the company opens stores and launches new brand campaigns.

Here’s what Jim Cramer recently said about Lululemon Athletica Inc. (NASDAQ:LULU):

“Darden joins three other premium value businesses, Williams-Sonoma, Ralph Lauren, and Lululemon. All had great numbers, also goods that cost a lot of money yet in each case, consumers recognize that their product is worth every penny. That’s why I call it premium value or value at a price. If you’re willing to pay up for quality, but you’re still somewhat cost-conscious, they got you covered.”

At the end of Q3 2024, Lululemon Athletica Inc. (NASDAQ:LULU) was held by 45 hedge funds. Alyeska Investment Group increased its stake in the company by over 2500% during the third quarter.