Company: to an anticipated range of $1.25 to

Company: Lululemon Athletica inc. Stock Symbol: LULU 
Industry: Consumer Goods

Lululemon Athletica, Inc. was founded by Chip WIlson in Vancouver, Canada in 1988. What first began as a yoga studio ended as an apparel design studio to better target athletic performers needs and wants from comments made during studio’s yoga classes.The yoga-inspired athletic apparel for women and men is now a successful world wide brand. The company is Canadian based. As of the last quarter, Lululemon Athletica revenues increased by 13.7%. The Net income decreased 13.68%,  $58.94M. Earnings per share are expected to rise from $1.19 to $1.22 to an anticipated range of $1.25 to $1.27 per share earnings in the upcoming January 2018 quarter. The revenues are a reflection of an increase in demand from consumers. Also, there has been accelerated trends during holiday seasons which in turn will bring company growth and revenue for the upcoming quarters. 

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Demand: Sales and revenue of the company continue growing. On a five year revenue report, revenue from the company was $1.37B in 2013, $1.59B in 2014, $1.8B in 2015, $2.06B in 2016, and $2.34 in 2017. The demand curve for Lululemon will be to the right. Company’s strong holiday season sales have raised expectations for 2018. They have paid attention to consumer taste(preference), the number of buyers in the market, consumer incomes, the price of related goods, and consumers expectations. 

Supply:Though there will be a record significant income tax charge in the fourth quarter due to foreign earnings and a rise in competition, the company’s strategy and earning trends point to more uninterrupted growth.The company is anticipating to invest in more product innovations,, build store fleet in North America, and expand digital business and international expansion.  An increase in demand and an increase in production expenses will cause an increase in supply, shifting the supply curve to the right. 

Elasticity:
Industry Elasticity: There are a large number of substitute goods for this product and since the price of product is relative to consumer’s income, there is a greater price elasticity of demand. 
Own Price Elasticity: Lululemon yoga pants are very pricy for me. They are elastic because I can replace them with Victoria Secret inexpensive ones. 

Cross Elasticity: 
Substitute Goods: The cross elasticity of demand is positive because a rise in Lululemon prices could cause consumers to buy from other brands like Nike, Adidas, Victoria Secret, ect. 
Complementary Goods: Yoga pants are complementary to yoga mats. A decrease in the price of yoga pants will increase the number of yoga mats purchased. 

Income Elasticity: Yoga pants are considered to be a normal good. This means quantity demanded of the product changes in the same direction as change in income. Lululemon are considered to be a luxury yoga pant. As income increases, the quantity demanded for these products will also increase. 

Supply Elasticity:When the demand for reproduction increases, Lululemon simply boost production. The supply of reproduction is highly elastic and an increase demand raises their prices only slightly. 
References

(n.d.). Retrieved January 31, 2018, from http://quotes.wsj.com/LULU/financials

Lululemon (LULU) Stock Moving Up the Charts: Time to Hold? (2018, January 16).  Retrieved January 31, 2018, from http://www.nasdaq.com/article/lululemon-lulu-stock-moving-up-the-charts-time-to-hold-cm905692

Lululemon athletica inc. (n.d.). Retrieved January 31, 2018, from https://www.marketwatch.com/investing/stock/lulu/financials

Company: Lululemon Athletica inc. Stock Symbol: LULU 
Industry: Consumer Goods

Lululemon Athletica, Inc. was founded by Chip WIlson in Vancouver, Canada in 1988. What first began as a yoga studio ended as an apparel design studio to better target athletic performers needs and wants from comments made during studio’s yoga classes.The yoga-inspired athletic apparel for women and men is now a successful world wide brand. The company is Canadian based. As of the last quarter, Lululemon Athletica revenues increased by 13.7%. The Net income decreased 13.68%,  $58.94M. Earnings per share are expected to rise from $1.19 to $1.22 to an anticipated range of $1.25 to $1.27 per share earnings in the upcoming January 2018 quarter. The revenues are a reflection of an increase in demand from consumers. Also, there has been accelerated trends during holiday seasons which in turn will bring company growth and revenue for the upcoming quarters. 

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For You For Only $13.90/page!


order now

Demand: Sales and revenue of the company continue growing. On a five year revenue report, revenue from the company was $1.37B in 2013, $1.59B in 2014, $1.8B in 2015, $2.06B in 2016, and $2.34 in 2017. The demand curve for Lululemon will be to the right. Company’s strong holiday season sales have raised expectations for 2018. They have paid attention to consumer taste(preference), the number of buyers in the market, consumer incomes, the price of related goods, and consumers expectations. 

Supply:Though there will be a record significant income tax charge in the fourth quarter due to foreign earnings and a rise in competition, the company’s strategy and earning trends point to more uninterrupted growth.The company is anticipating to invest in more product innovations,, build store fleet in North America, and expand digital business and international expansion.  An increase in demand and an increase in production expenses will cause an increase in supply, shifting the supply curve to the right. 

Elasticity:
Industry Elasticity: There are a large number of substitute goods for this product and since the price of product is relative to consumer’s income, there is a greater price elasticity of demand. 
Own Price Elasticity: Lululemon yoga pants are very pricy for me. They are elastic because I can replace them with Victoria Secret inexpensive ones. 

Cross Elasticity: 
Substitute Goods: The cross elasticity of demand is positive because a rise in Lululemon prices could cause consumers to buy from other brands like Nike, Adidas, Victoria Secret, ect. 
Complementary Goods: Yoga pants are complementary to yoga mats. A decrease in the price of yoga pants will increase the number of yoga mats purchased. 

Income Elasticity: Yoga pants are considered to be a normal good. This means quantity demanded of the product changes in the same direction as change in income. Lululemon are considered to be a luxury yoga pant. As income increases, the quantity demanded for these products will also increase. 

Supply Elasticity:When the demand for reproduction increases, Lululemon simply boost production. The supply of reproduction is highly elastic and an increase demand raises their prices only slightly. 
References

(n.d.). Retrieved January 31, 2018, from http://quotes.wsj.com/LULU/financials

Lululemon (LULU) Stock Moving Up the Charts: Time to Hold? (2018, January 16).  Retrieved January 31, 2018, from http://www.nasdaq.com/article/lululemon-lulu-stock-moving-up-the-charts-time-to-hold-cm905692

Lululemon athletica inc. (n.d.). Retrieved January 31, 2018, from https://www.marketwatch.com/investing/stock/lulu/financials

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