Lululemon vs. On Holding Stock: Which is the Better Investment Choice?
Saturday, 16 March 2024, 13:45
The case for Lululemon: Low risk, high payoff
Lululemon is known for its top-tier activewear and strong brand loyalty among affluent customers. The company's growth strategy aims to double sales by 2026 through digital channels and global expansion.
Key points:
- Lululemon reported a 19% increase in sales in 2023 Q3.
- Gross margin improved to 57% in the third quarter.
- Continued market outperformance compared to S&P 500.
The case for On Holding: More territory to conquer
On Holding, a younger company, focuses on premium footwear and fitness apparel, targeting serious athletes. With a 47% sales increase in the latest year, On Holding's strategic growth plan includes brand expansion and global market penetration.
Key points:
- On Holding boasts a 59% gross margin in 2023.
- A multichannel approach for global market reach.
- New deals with celebrity endorsers like Roger Federer and Iga Swiatek.
Conclusion: Lululemon provides stability, while On Holding offers growth potential. Choosing between the two depends on risk tolerance and investment goals.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.