Lululemon's a Real Lulu: Under the Radar

NEW YORK (TheStreet) -- If you are looking to invest in store growth, Lululemon Athletica(LULU Quote) is not the stock for you.

But a retailer doesn't need to be a store whore to rank among the best in class, especially in this economy.

Indeed, the yoga-inspired apparel retailer has done the seemingly impossible: as shoppers across the board trade down on discretionary purchases, Lulu has convinced them they need a pair of $90 pants that they will use solely for sweating. How do they do this? Sell them the promise of a better life along with sports bras and workout mats.

Granted, the company's good have much to recommend them: Loyal Lulu shoppers are hooked on the technical "moisture wicking" fabrics, with fancy names like Luxtreme and Silverescent, that vow to keep their wearers both sweat-free and odor-free. And they're fond of the flattering fits that make them feel as though they have lost weight before even hitting the gym -- and can be worn from spin class to the grocery store. Then there's Lululemon's five-year guarantee on all of its products.

But gym buffs can find workout gear with technical fabrics practically anywhere these days, especially at traditional sportswear companies like Nike(NKE Quote) and Under Armour(UA Quote).

What keeps "Luluheads," as loyal shoppers are more fondly known, returning to the stores is the aspirational lifestyle the retailer sells along with its gear.

Lululemon embraces its motto of self-improvement, offering free yoga classes and giving customers a forum to express their personal, health and professional goals.