Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on Lululemon Athletica Inc. (NASDAQ: LULU), with the unchanged price target of $450.
Despite significant growth over the past two years, Lululemon continues to see strength in its accessories business, notably bags. Accessories rose 67% and 44% YoY in 1Q23 and 2Q23, respectively, following meaningful growth in 2021 and 2022.
The viral Everywhere Belt Bag ($38) is much of the strength as it drew young customers, notes the analyst.
Management noted that its entire bag assortment performed well in this ...