The specialist in yoga-inspired "athleisure" fashion published yesterday annual results in line with its habits, with an increase in sales and profits of 30% - adjusted profits, of course, but for once, in a completely legitimate way here.

The margin profile is extraordinary, almost twice as high as that of Nike or Levis: Lululemon, which has its yoga pants made in China or Vietnam, still has no trouble selling them at $120 on average.

The inflation spike of the past few months has barely touched the gross margin; online sales are growing at a dizzying pace; and where most retailers are shrinking their physical footprints, Lululemon is expanding its with 32 openings by 2022, for a total network of 655 stores now.

In terms of major strategic initiatives, the picture is mixed: the internationalization of sales - as it stands 85% of revenues are generated in North America - is progressing slowly, while the acquisition of Mirror - the "Yoga Peloton" - in 2020 is clearly turning into a fiasco.

The breakthrough in men's fashion, on the other hand, is a good thing. The management - led by Calvin McDonald, the former CEO of Sephora - intended to reach at least $1.4 billion in sales in this segment: this objective has already been largely exceeded.

The ten-year track record remains very positive, with sales growing at an annualized rate of 20% and earnings per share at a rate of 18%. The expansion is entirely self-financed and the balance sheet is debt-free.

Capital allocation is evenly split between development investments and share buybacks. We appreciate the limited use of stock options, a recurrent source of abuse among fast-growing American companies in recent years.

Over the long cycle, and excluding the distortion caused by the pandemic episode, Lululemon shares are trading at between x30 and x40 earnings - multiples that were previously amply justified by the very good growth dynamic.

Now, the brand has to break through abroad, especially in Europe, where it will have to face a very aggressive, well-established and much more affordable competition.