Financial Statement Analysis-Final Project-LULULEMON ATHLETICA INC Research Paper

Financial Statement Analysis-Final Project-LULULEMON ATHLETICA INC. and the RetailApparel Industry - Research Paper Example historical data of stock price of the company and stock price data of market; future predictions about the stock price movement of the Lululemon has been estimated. The report also analyzes the forecasted financial statement and earning per share of the company. Also the report recommends investors whether they should invest in the company and industry or not. Valuation of the company has been done in order to identify the value of Lululemon. Also it has been revealed that the performance of the company would improve in the years to come as the forecasted financial statements state the company would be able to increase its assets as well as improve its profitability in the years to come. Also the expected returns of the company’s stock are estimated to be higher than the average market return. Apparel industry is one of the most attractive industries for investors to invest because the demand of such industry has always been high. The industry also suffered because of financial crisis in the year 2007 and right now the industry is improving its position with the passage of time. The industry is very competitive with lots of brand names operating in the market like PVH, V.F. Corporation, Lululemon, Polo Ralph Lauren and Liz Claiborne and many others. This report analyses the current scenario of the industry and its future outlook. The second part of the report covers analysis of one of the key players in the apparel industry, Lululemon. Lululemon financial strength and position have been analyzed and its stock price movement has been observed to estimate the future stock price of the company. In addition to this, in the report contains valuation of the Lululemon and recommends investors whether the company is profitable or not. The performance of apparel industry has been ordinary in the second quarter of 2011. The performance of firms in the industry during first quarter showed mixed results as there were some firms like PVH and V.F. Corporation which were