Lululemon's (LULU) Soaring Nike's (NKE) Boring

Based on comments from economic pundit Jim Cramer, Lululemon Athletica (NASDAQ:LULU) is running circles around competitor Nike (NYSE:NKE), and is a more compelling growth story.

On Friday Cramer mentioned that after looking at both companies following their quarterly earnings reports, Lululemon vastly outperformed analysts' expectation, while Nike underperformed.

For the latest quarter, Lululemon soared over 52 percent in revenue growth, while Nike only rose 7 percent.

Cramer noted that Nike "just isn't growing like we once thought." In comparison, Lululemon is a "high octane" secular growth story which has performed mostly through word of mouth.

Also of importance for performance was the rising margins at Lululemon, which jumped to 58.5 percent in the last quarter, while Nike's stood at 45.8 percent.

Nike was trading at $76.24, falling $0.42, or 0.55 percent, as of 12:05 PM EDT. Lululemon was at $84.21, gaining $5.57, or 7.08 percent.




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