Lululemon's China Comeback, Analyst Sees 60% Q3 Growth

BofA Securities analyst Lorraine Hutchinson reiterated a Buy rating at Lululemon Athletica Inc. (NASDAQ:LULU) with a price target of $355.

The analyst says that the data shows that LULU’s sales in China have picked up momentum in the third quarter to date, following a slowdown in the second quarter.

Notably, Meritco’s data shows that Lululemon’s China sales increased by 48% in August and 67% in September, with a 98.4% correlation to reported sales. This marks a significant rebound from the second quarter.

Although monthly sales can be volatile, the analyst maintained the estimate of 60% growth for the quarter, adding 300 basis points to total sales ...