Lululemon Stock Is Beaten Down Now, But It Could 10X

Core Viewpoint - Lululemon Athletica has faced significant stock price declines and revenue growth slowdowns, but there are potential opportunities for substantial long-term growth and stock price appreciation. Group 1: Current Performance and Market Position - Lululemon's stock has decreased by 20% over the past five years and is down 52% from its all-time highs [1] - Revenue growth in North America has slowed from 29% year-over-year in Q1 2022 to just 4% in Q1 2025, raising concerns about market saturation [3] - Despite competition, Lululemon has gained market share in the premium athletic wear category, while competitors like Nike and Athleta have seen revenue declines of 11% and 8% respectively [4] Group 2: Future Growth Potential - Lululemon is still a small player in the $359 billion U.S. apparel market, indicating significant room for growth [6] - The company has opportunities for international expansion, particularly in China, where revenue grew 22% year-over-year to $368.1 million [10] - Revenue from markets outside North America and China grew 17% year-over-year to $328 million, suggesting strong growth potential in regions like Australia and Latin America [11] Group 3: Financial Strategies and Projections - Lululemon's current revenue is just under $11 billion annually, with potential to double or triple in the next decade [14] - The company has been actively repurchasing shares, reducing outstanding shares by 6% over the last three years, which can enhance stock returns [16] - The stock is trading at a P/E ratio of 16.6, near a 10-year low, which could normalize as revenue growth accelerates, further boosting stock returns [17]