9/28/2011
By Brian Sozzi, Research Analyst

I have no kids, but surely remember the elementary school years.  The hallmark to those years, outside of mom shuttling me to baseball practice and helping into the wee hours with homework, was how quickly I outgrew clothes.  Shopping expeditions to the local JC Penney (JCP) and Tom McCann were devoid of fun for I knew dear ole mom was going to trade the cool factor for things that could last a growing body a couple extra months.

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.

How the company has created clothes that grow and morph:
* Clothes could be brought back into any Ivivva or Lululemon store and the hem in the pants are taken out.
* Some products, in particular the "rhythmic tights", have strategically placed bar tacks so that the child could hem them alone into crops or shorts.
* A good portion of the assortment is reversible.
* Jackets have a "tricked out" built-in ponytail holder in the hood.

Brian Sozzi
Wall Street Strategies

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