Is Lululemon On Track To Hit Margin Guidance?

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BMO Capital provided its analysis on
Lululemon Athletica inc.LULU
on Thursday. The analysts stated the company is the only brand in their data that posted declining quarter-to-date markdowns.

They believe the company, with 5 percent markdowns, is beginning to anniversary the negative effects for the West Coast Port congestion from the first quarter of 2015.

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According to the BBD (BMO Big Data), the management's target for the second quarter GM improvement is on track. "We believe LULU's relative stock outperformance has a lot to do with its ability to keep markdown levels lower in a highly promotional retail environment," said the analysts.

BMO Capital currently has a Market Perform rating on Lululemon, which was trading up 0.86 percent on the day at $75.05 at time of writing.

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Posted In: Analyst ColorAnalyst RatingsBMOBMO Capital
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