I’ve been scratching my head since they had a $2.8 billion market cap, and now they are trading at $9.2 billion.
They are headquartered in Vancouver, British Columbia, Canada, which is right in my backyard.
The after-tax profit margin (19%, trailing 12 months) is just incredible for a clothing company. It is right up there with handbag producer Coach (NYSE: COH), although in the latter’s case they have a somewhat more reasonable valuation.
In both cases, understanding women’s sense of fashion is the key investing variable. What’s the next meme after yoga pants?