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VANCOUVER/MILAN - Athletic apparel retailer lululemon (NASDAQ:LULU), currently trading near its 52-week low but showing strong financial health according to InvestingPro analysis, will open its first store in Italy on Saturday, July 19, 2025, the company announced in a press release.
The new location will occupy approximately 5,700 square feet across two floors in Milan’s central shopping district at Vittorio Emanuele II 24/28. The store will feature both men’s and women’s collections designed for activities including yoga, running, training, tennis, and golf.
According to the company statement, the store design will incorporate elements of Italian craftsmanship alongside modern materials, including a custom 3-D printed façade installation inspired by lululemon’s Define Jacket pattern.
The Milan opening represents lululemon’s first entry into the Italian market as part of its international expansion strategy. The company, maintaining impressive gross profit margins of 59% and generating over $10.7 billion in revenue, currently operates stores across several European countries including the UK, France, Germany, and Spain.
The new location will offer Global Blue Tax-Free Shopping for international visitors and feature the brand’s "Endless Aisle" technology allowing customers to access products beyond what is physically stocked in-store.
This expansion aligns with lululemon’s "Power of Three ×2" growth plan, which aims to quadruple international revenue from 2021 levels by year-end 2026.
The company stated it plans to engage with the local community through partnerships with studios, run clubs, and a new ambassador program, though specific details were not provided. With revenue growing at 9.4% and a healthy current ratio of 2.28, lululemon appears well-positioned for this expansion. For detailed analysis and additional insights, including 12 more exclusive ProTips, visit InvestingPro.
In other recent news, Lululemon Athletica Inc. has been involved in several noteworthy developments. The company is currently engaged in a legal battle with Costco Wholesale Corporation, accusing Costco of selling unauthorized imitations of its popular products like SCUBA hoodies and ABC pants. Lululemon seeks to halt these sales and obtain damages, asserting that these actions could harm its brand reputation. Meanwhile, Lululemon is undergoing a reorganization, leading to approximately 150 corporate job cuts to enhance operational agility and support growth initiatives.
On the financial front, Morgan Stanley downgraded Lululemon’s stock rating from Overweight to Equalweight, lowering the price target to $280, citing concerns over performance in the Americas. Despite these challenges, TD Cowen maintained a Buy rating, highlighting confidence in Lululemon’s upcoming women’s product innovations and inventory strategies. Stifel also reiterated a Buy rating, emphasizing the company’s potential for sustainable earnings growth driven by global expansion and product innovation. These recent developments reflect a mix of strategic legal actions, organizational changes, and varied analyst perspectives on Lululemon’s financial outlook.
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