Lululemon Athletica inc. (NASDAQ:LULU), on the other hand, is more focused on women’s sports clothing and yoga wear. The company has been going through somewhat troubled times lately, especially due to the recent recall of its Yoga-Luon pants, for being too sheer. The company’s shares tumbled following the news, also denting its earnings results for the quarter. Last year, the company was involved in another issue in quality maintenance when there were problems related to dye-bleeding.
Nevertheless, Lululemon Athletica inc. (NASDAQ:LULU)’s strongest points are its retail stores. The rapidly expanding company aims to open eight new stores in the next quarter and 43 in fiscal 2013. NIKE, Inc. (NYSE:NKE) may be too big to be affected by this piece of news, but it does face some serious competition from Lululemon Athletica inc. (NASDAQ:LULU) in yoga athletic wear and, to some extent, golf wear.
Just Do It
When all is said and done, Nike still has quite an edge over these smaller companies. Deals with sports leagues and endorsement contracts with celebrities are some of the factors that will continue to work in its favour. The company recently signed on the world’s No. 1 golfer, Rory McIlroy as its brand ambassador.
Strong numbers, a huge market share, growing international presence with increasing scope in the developing countries, and a huge brand name make me optimistic about this stock. With a little more effort in effective inventory management and new product launches, NIKE, Inc. (NYSE:NKE) can continue to be king of its segment. And with its shares trading at an all time high, it may just make you very rich, very soon.
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