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Hi everyone.

I'm curious as to why Lululemon's share price failed to grow from 2011 to 2017, but suddenly rocketed in 2018.

2011..... .....2019

179 287 376 391 376 369 421 456 706

This is their history of net income. In 2012 they reached a share price of approx $75. This remained stagnant over the next 4 or so years, which is understandable because net income growth was essentially non existent after 2013. After 2016, their net income started to grow again. In 2019, it reached 706.

The growth from 179 to 287 (2011 to 2012) is about 60%. The growth from 421 to 706 is roughly 70%.

Yet the share price growth from 2011 to 2012 was about 120%, compared to the share price growth from 2017 to just before covid of 358% ish.

Would someone be able to give me some insight into why the share price growth is so different, even though earnings growth was relatively strong in both? Or is this a case of the market being inefficient?

Thanks!



Submitted May 29, 2020 at 08:54PM by ltdan1999 https://ift.tt/3eAB0dA

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