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Lululemon Soars After Cramer's 'Must-Own' Call

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  Published in Stocks and Investing on Tuesday, February 24th 2026 at 12:57 GMT by CNBC
      Locales: New York, UNITED STATES

February 24th, 2026 - CNBC's Jim Cramer sent Lululemon (LULU) soaring in pre-market trading today after emphatically declaring it a 'must-own' stock during his 'Lightning Round' segment on Monday. Cramer's bullish stance centers on the athletic apparel retailer's demonstrated resilience, consistent growth trajectory, and anticipated strong performance in its upcoming earnings report this Thursday. But what exactly fuels this confidence, and is Lululemon truly a 'must-own' in the current market landscape?

Cramer's endorsement isn't a simple, isolated prediction. It's rooted in Lululemon's proven ability to not only survive but thrive in a challenging economic climate marked by persistent supply chain disruptions and inflationary pressures. Many retailers have struggled to maintain both product availability and pricing integrity. Lululemon, however, has managed to do both - a rare and highly valuable feat.

Navigating the Supply Chain Maze

The past few years have witnessed unprecedented strain on global supply chains, impacting businesses across all sectors. Lululemon's success in mitigating these issues is a testament to its robust supplier relationships, strategic sourcing, and agile logistics. While competitors grappled with delays and shortages, Lululemon consistently maintained product flow, minimizing disruptions and maximizing sales. This isn't just luck; it's a strategic advantage built on proactive planning and investment in supply chain infrastructure. Experts suggest Lululemon prioritized building strong, long-term partnerships with key suppliers, often securing preferential treatment during times of scarcity.

The Power of Pricing Integrity

Perhaps even more crucial than avoiding supply chain snags is Lululemon's ability to maintain pricing power. In an environment where consumers are increasingly price-sensitive, many companies have resorted to discounting to drive volume. This can erode profit margins and signal weakness. Lululemon, conversely, has consistently held firm on its pricing, demonstrating the strength of its brand and the perceived value of its products. As Cramer pointed out, "They're not giving it away. They're still selling stuff at a good price." This suggests that consumers are willing to pay a premium for Lululemon's quality, fit, and design - a hallmark of a truly strong brand.

Five Years of Stellar Performance

The numbers speak for themselves. Over the past five years, Lululemon shares have surged over 240%, significantly outpacing the S&P 500's 82% gain. This impressive performance isn't merely a result of market exuberance; it's a reflection of consistent revenue growth, expanding margins, and increasing market share. Lululemon has successfully broadened its appeal beyond its initial core demographic of yoga enthusiasts, expanding into running, training, and everyday wear.

Beyond Apparel: A Lifestyle Brand

Lululemon's transformation from a niche athletic apparel brand to a lifestyle powerhouse is another key driver of its success. The company has strategically invested in building a strong community through in-store events, ambassador programs, and digital engagement. This fosters brand loyalty and encourages repeat purchases. They've also successfully expanded into footwear and personal care products, diversifying revenue streams and strengthening their position as a holistic wellness brand. Analysts predict continued growth in these ancillary markets.

Looking Ahead: Earnings Expectations

All eyes will be on Lululemon's earnings report after the market closes on Thursday. Analysts are projecting continued strong performance, with expectations for both revenue and earnings to exceed previous guidance. Key metrics to watch include same-store sales growth, online sales performance, and gross margin trends. Any indication of slowing growth or margin compression could trigger a negative reaction from investors. However, given Cramer's optimistic outlook and the company's track record, the consensus is leaning towards a positive surprise.

Is Lululemon a 'Must-Own'?

While no stock is ever guaranteed to perform, Lululemon presents a compelling case for inclusion in a well-diversified portfolio. Its strong brand, consistent growth, demonstrated resilience, and pricing power make it a standout player in the competitive retail landscape. However, potential investors should be aware of the risks, including increased competition from established athletic apparel giants and the potential for economic slowdown. Despite these risks, Jim Cramer's enthusiastic endorsement - and the underlying data supporting it - suggest that Lululemon remains a compelling investment opportunity.