12 Best Apparel Stocks to Invest In

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4. Lululemon Athletica (NASDAQ:LULU)

Number of Hedge Fund Holders: 60

Founded in 1988, Lululemon Athletica (NASDAQ:LULU) is a luxury athletic apparel, footwear, and accessories brand with around 38,000 employees. It sells leisure-athletic wear and accessories such as socks, bags, and yoga mats for fitness activities.

Lululemon Athletica (NASDAQ:LULU) has significant expansion potential, supported by new store openings and higher same-store sales. It reported a 9% year-over-year growth in revenue through the first three quarters of fiscal 2024, higher than that of fiscal 2023 and 2022. The company holds a competitive market advantage due to its premium offerings, as a key factor in its strategy is to differentiate its offerings from those of its competitors.

Although the company had a challenging 2024, it has historically performed soundly. Its stock has soared by around 670% in the past decade, primarily due to the company’s solid underlying fundamentals. It reported a 19% annualized revenue growth between fiscal Q3 2014 and fiscal Q3 2024. In addition, the company’s diluted earnings per share (EPS) grew at a compound annual growth rate (CAGR) of 21% in the same period, which reflects its profitability potential. Lululemon Athletica (NASDAQ:LULU) ranks fourth on our list of the 12 best apparel stocks to invest in.

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