Predictions: Lululemon Will No Longer Be a Canadian Company
It looks like industry analysts are predicting that Lululemon Athletica will be sold in 2016. According to Brian Sozzi, founder of Belus Capital Advisors and a writer for Thestreet.com Lululemon will be sold in 2016, and most likely to an international or U.S. holding company. Why should you care about what Brian Sozzi says? Well, Mr. Sozzi was the man who correctly predicted that Target would vacate all 133 of their stores last year. Initially, there was some serious backlash against Sozzi for the predictions, but it turned out to be right.
This is not the first time Lululemon sell off speculation has been raised, and we think with lowering stock prices and all the issues Lululemon had last year, 2016 might be the year that we say goodbye to Lululemon as a Canadian company. Don’t worry the Lululemon brand will still exist, as one of the Top 25 Fashion Brands in the world, it would be ludicrous if a purchaser of Lululemon did not capitalize on its brand equity.
According to the Mr. Sozzi article featured on TheStreet.com, he thinks V.F. Corp. is probably the most likely organization to buy Lululemon. VFC is known for acquiring brands and has the capabilities to help Lulu expand internationally on a greater scale. Currently, V.F. Corp. owns: Vans, The North Face, Timberland, Nautica and many more.
Source: The Street