11 Best Fashion Stocks To Buy Now

4. Lululemon Athletica, Inc. (NASDAQ:LULU)

No. of Hedge Funds as of Q2 2024: 45

Lululemon (NASDAQ:LULU) designs, distributes, and sells athletic apparel, footwear, and accessories. Its apparel segment offers shirts, shorts, tops, jackets, and other necessary items for a healthy lifestyle and athletic activities, such as running, training, yoga, and others. Its collection also includes fitness-inspired accessories. The company’s segments are divided into company-operated stores and direct-to-consumer segments.

Lululemon’s  (NASDAQ:LULU) technical athletic footwear, apparel, and accessories are sold through different channels, including direct-to-consumer via e-commerce, company-operated stores, outlets, sales to wholesale accounts, recommence, license and supply arrangements, and sales from temporary locations. It also operates Lululemon Studio, which offers in-home connected fitness and related content subscriptions. Lululemon  (NASDAQ:LULU) manages stores in the United States, Canada, Australia, the United Kingdom, Germany, South Korea, and others.

The company’s significant market popularity gives it a competitive edge. By merchandise category, men’s increased by 11%, women’s by 6%, and accessories by 7% in Q2 2024. The company also repurchased $584 million of its stock in Q2, bringing its total to $1.2 billion year-to-date. This highlights the company’s continued confidence in its business.

Lululemon  (NASDAQ:LULU) saw strength in its regional performance, with international markets showing high consumer engagement with the brand. Its established business outside North America remains one of its largest growth opportunities. It is on track to quadruple its international revenue from 2021 levels by the end of 2026. Total international revenue in the quarter increased by 29%, or 31% in constant currency, highlighting the company’s robust profitability model.

The company is fast-tracking a number of new styles within tops, performance shorts, and tracksuits for 2025. The company exhibits confidence in its new strategies and is on track to return to its historical levels of newness before Spring 2025. The stock sports a consensus Buy rating among analysts, and its median price target of $262.61 implies an upside of 23.38% from current levels.