Lululemon Share Price Rose 6%

After the holiday season to clear up backlog stocks, analysts believe that the three and fourth quarter North American yoga clothing retailers Lululemon Athletica Inc. (NASDAQ:LULU), which suffer from the stock collapse, will see a significant "gross margin opportunity" this year. The shares recorded a strong rise of 7% in the background of the first collapse of China's A shares triggered by the global stock market crash on Monday.

Jefferies Group LLC analyst Jack Farrow Randal Konik and Wells Fargo & Co. (NYSE:WFC).

Randal Konik believes that the "signs of sustainable recovery" of Lululemon Athletica Inc. are "clear", and now analysts have already adjusted their expectations for the brand, but

The favorable outlook has not been reflected in these expected data, so the future performance of Lululemon Athletica Inc. will reach or even exceed the market expectations, and the target price of the unit will be raised to $70 by Randal Konik.

Ike Boruchow also expressed confidence in the gross profit prospects of Lululemon Athletica Inc.. He believed that the cost of the brand products would decline in the new year, and the dependence on air cargo (the current ratio was 40%) would also be mitigated, which means that the efficiency of the supply chain would be significantly improved. Moreover, the negative factors of the gross profit margins had already been in the past, and the sales discount would be correspondingly reduced. It is estimated that the gross profit margin in the 2016 fiscal year can be raised by 120 basis points.

On the other hand,

The boom will continue to keep the brand growing.

Ike Boruchow points out that Lululemon Athletica Inc. (NASDAQ:LULU) can rise to $64-66, after a target price of $50-52.

In view of the three quarter slump and massive inventory,

The Inc. quarter lowered its forecast for the four quarter and the full year. It is expected that the EPS in the four quarter will be $0.75-0.78, lower than the $0.85 expected by the S & P, and is expected to earn 6.70-6.85 billion in the four quarter, which is also lower than the $690 million 200 thousand expected by the S & P.

As for the annual EPS forecast, the group's latest decision is 1.81-1.84 dollars, which was expected to be 1.87-1.92 dollars. The annual income is expected to be 20.25-20.40 billion, which was expected to be 20.30-20.60 billion.

Lululemon Athletica Inc. (NASDAQ:LULU) fell 5.2% throughout the year, running 0.7% of the S & P 500 index, which has fallen for three consecutive years.

Lululemon Athletica Inc. (NASDAQ:LULU) rose 6.29% to 55.77 dollars in midday on Monday, and rose 3 to 56.13 U.S. dollars in the afternoon.

Lululemon Athletica Inc. has dropped 12.1% to $53 million 153 thousand in the last three quarters, adjusted earnings of $0.35 a share, and also missed the market forecast of $0.37.

The gross profit margin in the three quarter was only 46.9%, down 340 basis points from 50.3% in the same period last year, and the stock explosion increased by 71.9% to 357 million 800 thousand US dollars, and the stock growth was almost five times of the 14.4% increase in revenue.

The total income is 479 million 700 thousand dollars, less than the market expectation of over US $480 million.

Analysts disagreed about the performance of Lululemon Athletica Inc. in the most important four seasons holiday season. Wedbush analyst Morry Brown pointed out that the brand had neither promotions nor price reductions, but the conversion rate of passenger flow and sales at Christmas weekend was very strong. This is not the brand of other yoga wear brands in the shopping mall.

However, Susan Anderson, a FBR analyst and Co. analyst who has been following the brand and has a pessimistic attitude, said that the promotion efforts of Lululemon Athletica Inc. on Boxing Day (Boxing Day) in December 26th increased significantly compared with the same period last year. This shows that sales of goods occupy 19 shelves this year, compared with 3 shelves last year.