Analysts provided their views on Lululemon Athletica Inc. (NASDAQ:LULU) ahead of the Shanghai Analyst Meeting scheduled for October 9-10.
JP Morgan analyst Matthew R. Boss notes that North American revenues have outperformed Lululemon’s (Overweight with a price target of $338.00) April 2022 Investor Day plan, exceeding the expected low-double-digit CAGR by around 10 points, with FY23 achieving a 20% CAGR.
As a result, revenues in North America may now be “normalizing” toward the originally outlined low-double-digit CAGR for 2021-2026, with the analyst projecting a return to a 12% CAGR in the second half of FY24.
Boss expects Lululemon’s international revenues to grow by over 30% annually in FY24 and into FY25/26, resulting in a 35% revenue CAGR by 2026 compared to 2021, exceeding management’s 30%+ target.
This growth, driven by both China and other global markets, is expected to increase international ...
