Jim Cramer Discussed These 11 Restaurants and Retail Stocks

5. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 45

Commenting on Lululemon Athletica Inc. (NASDAQ:LULU), Cramer said:

“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.”

Lululemon (NASDAQ:LULU) designs, manufactures, and sells athletic apparel, footwear, and accessories. Known for its emphasis on high-quality fabrics and innovative designs, the company has positioned itself as a leader in the athleisure market. This positioning helps differentiate it from mass-market competitors, establishing it as a premium brand in the industry.

In early December, the company reported a 9% increase in sales, reaching $2.4 billion for the third-quarter period that ended in late October. CEO Calvin McDonald expressed satisfaction with the company’s performance, particularly as it entered the holiday season. This growth contributed to a significant rise in net income, which exceeded $1 billion for the first three quarters of 2024, compared to $881 million during the same period in the prior year.

It has also raised its full-year outlook, reinforcing its confidence in the continued success of its business. Lululemon (NASDAQ:LULU) remains committed to its “Power of Three x2” strategy, aiming for $12.5 billion in revenue by 2026. Management has stated that it is ahead of schedule in reaching this target. Additionally, using its 2024 revenue guidance, the company reported a compound annual growth rate (CAGR) of 19% for revenue from 2021 to 2024, surpassing its initial target of 15% CAGR.