Lululemon Athletica (LULU) is likely to recover with improved merchandising amid an increasingly choppy macro-backdrop, Oppenheimer said in a Thursday note.
"We are optimistic that now much improved merchandising at the company will over time help to underpin a gradual restrengthening in demand trends domestically," the report said.
Oppenheimer analysts, including Brian Nagel, said that would push "top- and bottom-line expansion at lululemon back toward normalized, healthy algos."
The analysts said Lululemon delivered better-than-expected Q4 results Thursday, while issuing fiscal 2025 guidance that was below Street estimates.
They also pointed to indication from the management of an uncertain US macro environment that contributed to consumer caution, and meaningful pressure on industry-wide traffic trends.
Oppenheimer kept its outperform rating on the stock.
Price: 290.01, Change: -51.53, Percent Change: -15.09
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