Lululemon Athletica Inc. engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth in Canada, the United States, and Australia.

File this one squarely under the "real world observation" category.  Running and yoga have both been on the rise in popularity.  Major races have seen increasing enrollment over the past couple of years and even some of the smaller community races that used to struggle to find entrants are having to turn folks away.  There seems to be a yoga studio on just about every corner these days, too.  It appears that lululemon may have come on the scene just in time to take advantage of this and as they become a more recognized brand, they may very well grow to become the "urban outfitter" of choice for  participants in these activities.

If the relatively recent eruption of their stores in some of the more swanky and up-and-coming areas of DC is any indication (and poking around to find out where their stores in other major cities are located, it seems to be), it's a sure thing they're going to do well.  Their stores all seem to be situated within relatively close proximity to one or more gyms/yoga studios.  For instance, the one closest to me (Logan Circle) is mere steps away from Vida Fitness -- and its a sure thing that many of the folks plunking down astronomical membership fees for that upscale haven 'o health are also parting with sizeable sums to outfit themselves at the neighboring lululemon which sits right around the corner.

The stock has taken a bit of a beating lately but I'm chalking that up to a relatively turbulent market.  I may be overshooting this one a bit, but given time, I think it's got a nice comeback ahead of it.