5 Best Sporting Goods Stocks To Buy Now

2. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 64

Lululemon Athletica Inc. (NASDAQ:LULU) specializes in the design, distribution, and retail of athletic apparel, footwear, and accessories under the Lululemon brand. Their product range includes pants, shorts, tops, and jackets for lifestyle activities like yoga, running, and training. Additionally, the company offers fitness-inspired accessories and footwear. Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best sporting goods stocks to invest in. 

On June 1, Lululemon Athletica Inc. (NASDAQ:LULU) reported a Q1 GAAP EPS of $2.28, beating market estimates by $0.29. The revenue increased 24.2% year-over-year to $2 billion, topping Wall Street consensus by $80 million. The company forecasts that in the second quarter of 2023, net revenue will fall within the range of $2.140 billion to $2.170 billion, reflecting 15% growth. The diluted earnings per share are projected to be in the range of $2.47 to $2.52 for the quarter.

According to Insider Monkey’s first quarter database, 64 hedge funds were bullish on Lululemon Athletica Inc. (NASDAQ:LULU), compared to 65 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the leading stakeholder of the company, with 1.89 million shares worth $689.7 million. 

Brown Advisory released its Q2 2020 investor letter and mentioned Lululemon Athletica Inc. (NASDAQ:LULU). Here is what the firm said: 

“The recent market volatility afforded us the opportunity to swap out of our position in TJX Companies into Lululemon Athletica. While nothing at TJX was broken, our action was purely an upgrade from one good business model into an even better one, in our view. We believe Lululemon has an exceptional business model within the athleisure apparel space. The company has complete control over its product line distribution, which is rather unique for an apparel company. This gives the company a favorable margin structure, coupled with a fast-growing top line. As compared to TJX, Lululemon also benefits from a higher percentage of sales from e-commerce, which is becoming more important in the near and long term.”