MKM lowers Lululemon Q1 comp estimate to 7% from 11% after survey
MKM Partners analyst Roxanne Meyer says that while her firm's latest proprietary survey, in collaboration with Wendy Farina and the Quantitative Survey Group, points to "still robust trends" for Lululemon Athletica, it shows a "modest slowdown" in women's and in Canada versus the last several quarters. This isn't completely surprising given tough compares and the industry backdrop, however, Meyer tells investors in a research note. On the company's 2019 outlook, the analyst continues to assume high-teens percentage sales growth is achievable, though she sees "uncertainty around the level and types of investments deemed critical to support ongoing robust growth." Following the survey, Meyer lowered his Q1 comp estimate for Lululemon to 7% from 11% and earnings per share estimate to 65c from 68c. She keeps a Buy rating on the stock with a $179 price target. Lululemon in early trading is up 32c to $143.53.