Brian Sozzi Discusses Lululemon

Brian Sozzi is out with a research report on Lululemon (NASDAQ: LULU), and how its sister brand Ivivva, has created clothes that grow with the consumer.

In the note to clients, Sozzi writes, "Now paying for my own suave attire and building stock portfolios for a crowd that shop where I strive to one day, I am always on the lookout for an interesting product that improves upon the status quo in a meaningful way. For if it could do so, financial rewards and a higher stock price may be in the cards. Enter Lululemon's (LULU) little sister brand Ivivva, which is targeted to 4 to 14 year old girls that have a passion for dance (50% of assortment designed for dance), ice skating, and an overall active lifestyle. The team at Ivivva has addressed the age old question, at least partially through certain pant offerings, of children outgrowing their clothes. In the process, Ivivva products are premium priced in nature."

He goes on to say that the clothes can be brought back into any Ivivva or Lululemon store and the hem in the pants are taken out. Some of the product is reversible, jackets have a ponytail holder, and "some products, in particular the "rhythmic tights", have strategically placed bar tacks so that the child could hem them alone into crops or shorts."

Shares of LULU are up 8 cents to $55.95.