SOURCE: Paragon Financial Limited

Paragon Financial Limited

September 09, 2011 08:16 ET

Trend Setter Lululemon Garners Attention From Gap

The Paragon Report Provides Equity Research on Lululemon & Gap

NEW YORK, NY--(Marketwire - Sep 9, 2011) - The Paragon Report examines investing opportunities in the Retail (Apparel) Sector and provides investment research on Lululemon Athletica, Inc. (NASDAQ: LULU) (TSX: LLL) and Gap, Inc. (NYSE: GPS). Access to the full company reports can be found at:

Consumer spending has stagnated in recent quarters on fears of unemployment, low wages for those with jobs, high energy prices, and rising food costs will all continue to affect US consumers. With spending on the downswing, clothing retailers are focusing on the most popular trends in hopes of attracting the diminishing apparel customer-base.

In a recent report from Bloomberg, Ashley Lutz reveals that many clothing retailers are mimicking the strategy of Lululemon by selling expensive yoga gear. "By adding yoga gear to their mix, the three big retailers are angling to grab a larger share of women's athletic apparel sales," Bloomberg Businessweek reports.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Retail Sector register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Even with the economic downturn, Lululemon has struggled to keep its stocks shelved. Executives last quarter said they were catching up, but that inventory woes could persist through the year. Last month Lululemon launched an online sales platform in Canada. The company has said it plans to start online sales in the U.S. for the holiday season.

Gap Inc's Athleta stores sell $60 women's yoga tops and follow in Lululemon's footsteps by offering free yoga classes. Last week Gap announced that its net sales for the four-week period ended August 27, 2011 were $1.10 billion compared with net sales of $1.13 billion for the four-week period ended August 28, 2010. The company's comparable sales for August 2011, which include the associated comparable online sales, were down 6 percent compared with flat comparable sales for August 2010.

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