© Reuters.
On Friday, Piper Sandler adjusted the share value goal for Lululemon Athletica Inc. (NASDAQ:), lowering it to $525 from the earlier $560 whereas sustaining an Chubby score on the inventory.
This adjustment follows Lululemon’s announcement of strong fourth-quarter outcomes, though the corporate offered a considerably disappointing forecast for the fiscal yr 2024. The revised value goal displays a extra cautious outlook attributable to a notable slowdown in the US, which has raised questions in regards to the firm’s market share potential.
The analyst from Piper Sandler famous that the deceleration in U.S. gross sales could possibly be attributed to the corporate lapping larger markdowns and a basic spending slowdown between buying durations. The agency is monitoring Lululemon’s introduction of recent spring merchandise, together with skirts, shorts, and tanks, to gauge client response and the potential impression on gross sales.
Regardless of the lowered gross sales expectations, Lululemon’s worldwide progress was a robust level within the fourth quarter, significantly in China, the place gross sales surged by 78%. The corporate’s worldwide growth is anticipated to proceed driving progress all through 2024. In response to the analyst, this worldwide efficiency is a key consider supporting Lululemon’s ongoing success.
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