Oppenheimer Raises LULU Estimates

After the close yesterday (1/11), Lululemon Athletica Inc.

provided an updated outlook on FY4Q10. “Management increased 4Q guidance to $0.55-0.57 from a previously announced $0.46-0.48,” Oppenheimer writes. “As a result, we are adjusting our 4Q10E, FY10E and FY11E to $0.56, $1.50 and $1.85 from $0.48, $1.41 and $1.78, respectively. “We continue to believe LULU's achievable aspirational luxury status, differentiated product, inventory management and store growth opportunity are key areas for success. However, we believe they are largely priced in at current levels. “While we are confident in longer term opportunity, near-term difficult compares, execution risk and extended valuation (36x our forward estimate) keep us on the sidelines for now.” Lululemon Athletica currently trades at $72.41.