![]() Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. ![]() The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Fiscal first-quarter results are expected to be reported in the first half of June.Disclaimer: The TipRanks Smart Score performance is based on backtested results. Lululemon will host an annual meeting on June 3. Color around digital performance and initial store reopenings will be what moves the stock, he said.īarclays analyst Adrienne Yih also told clients in a note that “with core customers working from home, we believe ‘work-at-home wear’ consists of comfortable and casual apparel, and Lulu fits the bill.” Based on her view that there will be an increase in people working from home after Covid-19, she boosted her estimates for next year.Īnderson and Yih have buy-equivalent ratings on the stock. “The question is: does it stabilize or shrink?”Īs for the company’s upcoming earnings report, Siegel too is expecting a “strong” online performance. “It remains to be seen what the financial implications of the pandemic will be, but it seems reasonable to assume the audience of people willing to buy high-priced clothing is not going to get larger,” Siegel said. “When people are working in groups, fashion plays a stronger role, but at home comfort is king.” ![]() And right now, people are making purchases in athleisure wear to “recalibrate to their current new norm.” But, do people need to buy more or less fashionable athleisure? Is there a need to have multiple outfits to sit at your desk, home alone? These are among the things Siegel wonders. Stock prices today are dominated by themes, he said in an interview. Meanwhile, many of the company’s physical stores remain closed in North America, with some markets beginning to reopen in accordance with local government mandates.īMO Capital Markets analyst Simeon Siegel agreed Lululemon is an “at-home Covid winner.” But he questioned what that will mean longer term and said the potential risks are not being priced into the stock currently. Before the pandemic, Lululemon’s online sales rose 35% in its last full year, and Anderson expects the growth to have accelerated further this quarter.
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