The stock price of Canadian yoga sportswear retailer Lululemon Athletica Inc. hit a record high. As of last Friday’s close, Lululemon’s stock price was US$276.73 per share, which has fully doubled from the lowest point of this year’s stock price (US$138.98) on March 16. The current market value is US$36 billion.
Wall Street believes that staying at home after the epidemic will The office wave will make people buy more athleisure wear. Analysts say Lululemon’s product categories are in the best shape right now. B. Riley FBR’s Susan Anderson said in a phone interview Thursday: “The biggest seller right now is athleisure, just about everyone is saying that.” As of 2 In fiscal year 2019 as of March 2, Lululemon’s full-year net sales increased by 21% year-on-year, and online sales increased by 35%. Susan Anderson expects its online growth to accelerate further this quarter. Many of the company’s physical stores in North America remain closed, and some markets are subject to local government requirements before they can reopen.
BMO Capital Markets analyst Simeon Siegel also believes that Lululemon is “the winner of the home trend during the epidemic.” However, he also said that the current stock price of Lululemon is driven by the short-term epidemic stay-at-home demand; but in the long term, do people need to buy more fashionable sports and leisure wear? He said: “When people return to working together, fashion plays a bigger role. But at home, comfort is king.”
He said: ” The continued impact of the epidemic on the economy remains to be seen. But we have reason to believe that the number of people willing to buy high-priced clothing will not increase. The question is, is the number of such consumers stable? Or is it decreasing?”
SimeonSiegelexpectsthattheonlinebusinesswillperform”strongly”inLululemon’s upcoming first-quarter performance report. He said the performance of the online business and the resumption of store reopenings were the main factors driving the stock’s rise.
Barclays analyst Adrienne Yih also told clients in a report: “Core consumers are working from home and they need comfortable and casual ‘home office clothing’. Lululemon is Meets the requirements.” Adrienne Yih believes that after the epidemic, the number of people working remotely from home will increase. Based on this, she raised her expectations for Lululemon in fiscal 2020.
Among the above three analysts, Susan Anderson and Adrienne Yih rated Lululemon stock a buy, and Simeon Siegel rated it equal to the market.
Lululemon will hold its annual meeting on June 3 and announce first-quarter performance data in early June.
In the 2020 BrandZ list of the top 75 global retail brands announced on April 30, Lululemon’s brand value ranked first with a growth rate of 40%, reaching US$9.669 billion. . </p
