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2 Signs Lululemon Athletica's Growth Story Is Not Over

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Looking further out, management is targeting $4 billion in revenue by 2020, or annual growth of 18%. Morgan Stanley expects the activewear, or athleisure market to reach $83 billion by 2020. This would nearly double the market's current estimated size of $44 billion. With only a few billion in annual revenue, Lululemon has a small share of the fastest-growing market in apparel, giving the business plenty of room to grow in the future. Over time, investors should continually monitor Lululemon's gross margin for signs of brand strength or weakness.

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John Ballard has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Lululemon Athletica, Nike, Under Armour (A Shares), and Under Armour (C Shares). The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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