Lululemon Athletica (NYSE: LULU) is a retailer that sells yoga gear for women but is branching out into other kinds of active wear. The company operates 113 stores mostly in the US and Canada and sells products in specialty fitness centers through its wholesale segment.^[1] Lululemon's high product prices result in high margins for the company^[2].

Lululemon's customers are typically high-income women who are relatively insulated to prices and downturns in the economy. This was evident in 2008 as Lululemon's sales continued to grow despite a sluggish economy in the U.S.. In addition to new store locations, the company is preparing to launch an e-commerce operation on their website in 2009 while expanding its product lines to include more men's apparel as well as different accessories such as underwear, sandals and bags.^[3]

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