UPDATE: D.A. Davidson & Co. Reiterates on Lululemon Athletica on Mixed Factors

In a report published Friday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Neutral rating on Lululemon Athletica (NASDAQ: LULU), but lowered the price target from $73.00 to $67.00.

In the report, D.A. Davidson & Co. noted, “LULU reported constant currency comps, revenue and EPS of 5.0%, $379.9 million and $0.45. This compares to consensus estimates of 5.1%, $376.0 million and $0.41, and our estimates of 5.0%, $375.0 million and $0.41. Guidance called for mid-single digit comps, revenue of $370-$375 million, and EPS of $0.39-$0.41. Store revenue climbed 15% year-over-year (y/y), Direct-to-consumer increased an impressive 37%, and Other revenue was up 41%. Gross margin decreased 152bp y/y to 53.9% largely due to a 220bp product margin decline partially offset by 70bp of occupancy and supply chain expense leverage. SG&A grew 19% to $112.3 million, improving to 29.6% compared to 29.9% in 3Q12.”

Lululemon Athletica closed on Thursday at $60.39.