From TikTok Trend To Must-Have Accessory: Lululemon's Smart Play In The Cross-Body Bag Game And What's Next For The Brand: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on Lululemon Athletica Inc. (NASDAQ:LULU) with an unchanged price target of $450. The company's accessories business, particularly bags, has seen significant growth over the past two years. The Everywhere Belt Bag has been a major contributor to this growth. Despite potential competition from American Eagle Outfitters, Inc. (NYSE:AEO), Nordstrom, Inc. (NYSE:JWN), and Urban Outfitters, Inc. (NASDAQ:URBN), the analyst believes Lululemon's brand strength and first-mover advantage will keep it competitive.

September 21, 2023 | 5:13 pm
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NEUTRAL IMPACT
American Eagle Outfitters could pose competition to Lululemon in the cross-body bags category.
While American Eagle Outfitters is mentioned as a potential competitor to Lululemon in the cross-body bags category, the impact on its stock is uncertain without more specific information.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Nordstrom could pose competition to Lululemon in the cross-body bags category.
While Nordstrom is mentioned as a potential competitor to Lululemon in the cross-body bags category, the impact on its stock is uncertain without more specific information.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Urban Outfitters could pose competition to Lululemon in the cross-body bags category.
While Urban Outfitters is mentioned as a potential competitor to Lululemon in the cross-body bags category, the impact on its stock is uncertain without more specific information.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Lululemon's accessories business, particularly bags, has seen significant growth, which could positively impact its stock.
The significant growth in Lululemon's accessories business, particularly bags, indicates strong consumer demand and successful product innovation. This could lead to increased revenues and potentially a positive impact on the company's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100