Lululemon's Balancing Act: Unraveling The Yoga Apparel Retailer's Potential Gross Margin Expansion
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on Lululemon Athletica Inc. (NASDAQ:LULU) with a price target of $425. Lower air freight costs are expected to drive gross margin expansion in 1Q23. The company's inventory growth is expected to moderate, and 45-50 net new stores are anticipated to open in FY23.
May 26, 2023 | 5:49 pm
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Lululemon Athletica Inc. (NASDAQ:LULU) receives an Outperform rating from Telsey Advisory Group with a price target of $425. Lower air freight costs are expected to drive gross margin expansion in 1Q23.
The Outperform rating and maintained price target of $425 by Telsey Advisory Group indicate a positive outlook for Lululemon's stock. The expected gross margin expansion in 1Q23 due to lower air freight costs, along with the company's plans to open new stores, suggest potential growth and increased profitability, which could positively impact the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100