Lululemon Athletica "outperform"

06/04/08 - Credit Suisse

NEW YORK, June 4 (newratings.com) - Analyst P Lejuez of Credit Suisse reiterates his "outperform" rating on Lululemon Athletica Inc (LULU). The target price is set to $42.

In a research note published yesterday, the analyst mentions that the company has reported its 1Q08 EPS in-line with expectations. Lululemon Athletica has reduced its EPS guidance for FY08 from $0.72-$0.74 to $0.70-$0.73, short of the consensus, to reflect the rise in investments in people/systems in order to support its long-term growth. The company is expected to increase its square footage by 30%-50% per annum over the forthcoming 3 years, the analyst adds.