LululemonStock

Wealthy Shoppers Pay Premiums for Preferred Companies

By now we're all accustomed to hearing about the "two-speed economy," in which the wealthy flourish and the less affluent fall farther and farther behind. The widening gap between rich and poor has not been lost on the stock market: The valuations of luxury goods companies are much higher than those of lower-end firms.

Skip the $100 Yoga Pants, Buy Lululemon Stock

The upscale retailer of fashionable fitness apparel came through with another monster quarter this morning. Net revenue soared 39% to $212.3 million, backed by strong consumer-direct sales, brisk expansion, and a stunning 20% spike in comparable-store sales. Earnings grew even faster, climbing 76% to $38.4 million.

Hot Stocks for a Cool Market: lululemon athletica

Yoga and fitness apparel specialist lululemon athletica has earned the awe of stock watchers and customers alike. While the general market has gained a respectable 5% in 2011, lululemon is up more than 70%. Looking five to 10 years down the road, this could become one of the world's great athletic brands.