Forecast Of The Day: Lululemon’s Direct-To-Consumer Operating Margin

-16.32%
Downside
361
Market
302
Trefis
LULU: lululemon athletica logo
LULU
lululemon athletica

What?

Trefis expects Lululemon’s (NASDAQ:LULU) direct-to-consumer (DTC) Operating Margin to increase from around 37% in 2020 to about 38% in 2021 and around 39% in 2022. DTC includes e-commerce channels and company-owned stores.

Why?

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We expect margins to rise, driven by higher e-commerce sales and the introduction of new product categories.

So What?

However, we think that the projected growth in Lululemon’s revenues and margins is more than priced into the stock. We value LULU stock at $350 per share, about 14% below the current market price.

See Our Complete Analysis For Lululemon

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