There's no question that Lululemon Athletica (NASDAQ: LULU) has been a fantastic investment to own over the years. The stock is up an impressive 266% over the past five years (as of May 17), crushing the S 500's 53% gain. And even in 2023, shares have climbed 16%, a higher rise than the overall market. Given how well the business has performed from a fundamental perspective, it's easy to see why shareholders have been rewarded so much.
But at this moment in time, is Lululemon stock a buy, sell, or hold? Let's take a closer look at this booming apparel business in order to answer that pressing question.
While many companies continue to struggle with the uncertain economic environment, particularly as it relates to high inflation, rising interest rates, and the threat of a recession, Lululemon's business has benefited from strong momentum. The athleisure pioneer generated $2.8 billion of revenue in its fiscal 2022 fourth quarter (ended Jan. 29), up 30% year over year. And digital sales accounted for 52% of the overall business in the period.
Source Fool.com