lululemon athletica inc.’s LULU business growth opportunities coupled with efficient operating strategies have helped strengthening its base. This, in turn, is helping the company to boost shareholders’ returns through share-repurchasing activities. In a recent SEC filing, this well-known athletic apparel company announced its plans to expand stock buyback plans. Management stated that as on Oct 1, 2021, the company’s board approved a $500-million increase to its existing share repurchase plan.
As a result of this new share repurchase authorization, the company’s stock repurchase program has gone up to $641.2 million from $141.2 million. Management highlighted that the authorization has no limit and does not require the repurchase of a minimum number of shares. During second-quarter fiscal 2021, the company repurchased 0.5 million shares for a total cost of $171.1 million.
Share repurchasing actions are a prudent way of maximizing shareholders’ wealth and generating more value. The