Lululemon Athletica (NASDAQ: LULU), the company synonymous with trendy athleisure wear for women and men alike, continues to charge ahead in spite of the ongoing trade war between the U.S. and China. The Trump administration's latest round of tariffs on Chinese imports took effect last Sunday. More than two-thirds of consumer goods the U.S. imports from China now face higher taxes. The 15% taxes apply to about $112 billion of Chinese imports. On December 15, another round of 15% tariffs on $160 billion of Chinese imports will be imposed as well.
Lululemon's stock is up approximately 52% year-to-date compared to the S&P 500's gain of almost 17% and the company continues to exceed expectations and grow its earnings. Market watchers don't expect the company to suffer from increased tariffs on Chinese goods. Bank of America analysts projected second-quarter earnings to come in ahead of consensus estimates even with the additional tariffs coming into play. Following a surge in mid-June, the stock price has tapered down a bit, however. Lululemon's market cap is $23.39 billion and its most direct competitors include other prominent apparel brands Nike, Adidas, and Under Armour.
Image Source: Lululemon Athletica