Retail Expert: Lululemon Buoyed By 'Cult Following'

Lululemon Athletica inc LULU shares breached $60 for the first time in almost exactly four months on Tuesday, following the athleisure company's strong fourth quarter earnings and guidance reports.

But investors worried about whether it's a viable play in a struggling retail industry needn't, at least according to retail expert Kristin Bentz. Bentz, the president of The Talented Blonde LLC, thinks Lulu is actually very well-positioned for the future.

"I get such grief from a lot of investors for being as positive as I am on the name," she said on Benzinga's PreMarket Prep. "I think they have a lot of work to do, but they're doing some really cool stuff. If you watch very closely they really know what they're doing."

This includes going into high-fashion garments, creating one-off pieces that you can wear outside, and strengthening their men's collection. She also really liked their addition Swim, calling it "A logical brand extention for them."

Even within a space as crowded as athleisure, with everyone from Nike to Victoria's Secret competing for market share, Lululemon stands out for Bentz.

"They have such a cult following within the athleisure space that I could see them, with the right guidance, developing into a lifestyle brand." "It's a very crowded space...but I'm telling you, that Lulu customer, it is such a cult following. It's like a snobbery within the yoga world. I think this company has a lot more room to grow as long as they are mindful and keep the quality up."

Catch the rest of Kristin's interview below. Listen to today's PreMarket Prep in it's entirety here, and join us every morning from 8-9:30 a.m. ET for live trading ideas and analysis here.