Lululemon's Q3 Sales Surge: Analyst Predicts 60% Growth

Lululemon Athletica Inc. has experienced a notable rebound in sales, particularly in China, where figures have soared in recent months. Analyst Lorraine Hutchinson from BofA Securities noted that sales in China rose by 48% in August and 67% in September 2024, recovering from a slowdown earlier in the year. Hutchinson is optimistic about Lululemon's growth potential and has reiterated a Buy rating for the company. By maintaining a 60% growth estimate for the third quarter, she emphasizes the importance of China in Lululemon's international revenue strategy. Despite only accounting for 13% of total revenues, the growth seen in China is pivotal for Lululemon's long-term plans. The company aims to quadruple its international revenue by 2026, with the Chinese market being a crucial driver of this trajectory. The strong sales data indicates that consumer sentiment in China is recovering, providing Lululemon an opportunity to tap into a vibrant market. The overall performance of Lululemon was reflected in its stock, which saw marginal changes amid these developments. Investors are closely monitoring the brand's progress in international markets as they assess Lululemon's resilience and potential amidst mixed trends in the U.S. Overall, the positive sales trends in China strengthen confidence in Lululemon's diverse growth avenues, signaling a robust future for the brand in the international athletic apparel market.