Lululemon Counters Heavy Competition With Product Innovation, International Growth, and E-Commerce

We think Lululemon has a solid plan to expand its product assortment and geographic reach while building its core business. While many firms are looking to compete in its categories, we believe Lululemon benefits from the athleisure fashion trend and will continue to achieve premium pricing due to the brand’s popularity and the styling and quality of its products. Our narrow moat rating is based on the company's intangible brand asset.