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Yahoo Finance Live anchors discuss Lululemon’s efforts to grow as the apparel company looks to open stores in Spain.
- Welcome back. We're keeping an eye on Lululemon today, even as the broader market, we're seeing a little bit of a post July 4 hangover, seeing those futures on the Dow down over 400 points. But Lululemon in focus, Brad, after the company said it will open its first store in Spain.
And this is just, I think, keeping with the company's efforts to grow more aggressively and internationally. Keep in mind, Lululemon had that important analyst day in New York City in late April, said it wanted to quadruple its international sales from 2021 to 2026. And this might go a long way in helping them meet that goal.
- Yeah, and significance here, the significance here within Spain, I mean, the marathon running community places it at least among the top three, I believe, of marathon runners. So even as Lululemon kind of branches out into some of these different categories and the lines of businesses, particularly across men's, women's, and perhaps later on, they'll get more into kidsware, even, I think-- and the shoes. We got to talk about the footwear category.
I think with all of this expansion that they're looking at internationally, it's really leaning into the countries that have the culture and the profile of purchaser and customer that they're going after, whether that's across yoga and whether that's in running. And even more so, I think you and I have talked about the golf apparel most recently too. But I think that's where they continue kind of to lean into exactly where they can bring in two new stores in a local e-commerce site in Spain here particularly. And so we'll see how investors continue to play this, but I mean, it still comes at a time where they're going to have to navigate where they can place a supply chain emphasis servicing Spain as well. And that's going to be a larger question too.
- Brad, I want to like Lulu's golf apparel. It looks great visually online.
- Have you tried it on?
- --the stuff [INAUDIBLE]. Yeah, I don't know if you've had this problem. But when you get it, it's so-- it just hugs your body. I mean, I want to look good. I'm all for showing off my biceps on the links. But still, I need to be able to swing a golf club, man.
- Look, I tried on the pants. The pants felt decent, and I still went and bought some Nike golf pants because it's what I've used in the past. And so--
- You know, I think they make very good technical fabrics. I think Lululemon has disrupted in so many different ways, whether it's D to C, whether it's on making all of the other athleisure players believe that they can have a place in even the office space as well. But I think it's really going to take even more to really kind of saturate some of these other performance categories over an extended period of time. Lululemon Lab stuff, though, I will give a big head nod to that stuff. It's pretty creative as well.
- Yeah, it's pretty expensive too. The last thing I need for that is my, you know, cigar butt just getting a little bit on my shirt and burning a hole through my $120 Lululemon t-shirt. I will add this, though-- really good piece in the "Wall Street Journal" by their retail reporter Suzanne [? Kavanagh ?] today.
She's been all over this inventory increases in the US, as have we here at Yahoo Finance. But the US market is awash in apparel inventory. I know Lululemon plays at a premium in the market. But you still have to think that they could be lured into this deep discounting that's starting to sweep through retail.
- Yeah, we're going to continue to watch shares of LULU and especially on the inventory side once we finally get back around to some of their earnings later on. We'll see how they can service Spain going forward from here too.