Lululemon shares jump, says to split stock
TORONTO (Reuters) - Lululemon Athletica LLL.TO (LULU.O: Quote) said on Monday it will split its stock on a two-for-one basis, on a day the company's Toronto-listed shares jumped nearly 8 percent.
The company's stock surged after television stock pundit Jim Cramer praised the Canadian yoga-wear retailer on his Mad Money show on CNBC on Friday.
Though most retail apparel stocks are cyclical and people tend to buy less of such goods when the economy slows down, "Lululemon is different," Cramer said.
"It's what I call a high-octane secular growth story."
Cramer said Lululemon was different in that respect from Nike Inc (NKE.N: Quote), the athletic gear giant.
"Lululemon is immune to the economic environment," he said.
The Vancouver-based company said in an after-markets release that it would split both its common shares and its special voting shares on a two-for-one basis, subject to shareholder approval at its annual meeting on June 8.
Companies that split their shares often get a small trading boost due to increased liquidity and the perception that the shares are in demand.
Lululemon's stock has doubled in the past 52 weeks.
The stock rose C$6.04 to C$83.32 on the Toronto Stock Exchange on Monday, and gained $6.63 to $85.27 on Nasdaq.
(Reporting by S. John Tilak and Cameron French; editing by Rob Wilson)
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