Analysts with Cowen & Co see a path for Lululemon Athletica to someday reach a $40 billion market cap, generate a Nike-esque $1 billion in cash flow a year and reach a return-on-investment rate of 44%, which would stand as the highest in softlines retail, according to an emailed report.
The analysts cited as growth factors Lululemon's "consistent innovation, luxury-like brand positioning and a community-based model."
They also pointed to potential growth in menswear and international sales, as well as targets for $4.3 billion in women's apparel that would "put the brand in line with Nike and Adidas women's current global apparel businesses.". . . more