An Analysis of Financial and Operational Strategies of Lululemon Athletica Inc.

Abstract

Lululemon is a high-end fashion sportswear manufacturer founded in Vancouver in the 1990s and listed on NASDAQ in 2007. The company has experienced rapid growth over the past two decades to become an industry giant with annual sales of over $6 billion, a net profit of nearly $1 billion, and a market capitalization of approximately $38 billion. Moreover, the company has a unique market position, and a very high brand premium. This paper conducted a deep analysis by scanning its financial statements as the starting point, to find out the financial strategy and marketing strategy behind the company's success. At the same time, based on the SWOT model, Porter's Five Forces model analysis, the company's competitive strengths and weaknesses, and the potential problems underlying and challenges it faces have been extracted. Recommendations for the company are given based on the above analysis in order to maintain high growth in revenue, net profit, and market share.