Australian short seller John Hempton has described Lululemon as a gambit of female vanity, but added that the comment was not meant to be sexist.
Lululemon Athletica Inc. (TSX: T.LLL, Stock Forum) (NASDAQ: LULU, Stock Forum) shares were largely unchanged Monday following reports that Canaccord Genuity has initated coverage of the Canadian athletic apparel company with a buy rating and a target of $91.
The stock eased 0.07% to $71.29, leaving Lululemon with a market cap of $7.6 billion, based on 107.3 million shares outstanding. The 52-week range is $80.08 and $44.32.
“We believe LULU is evolving from an athletic brand with its roots in yoga to a lifestyle brand that is marrying form and function,” said Canaccord retail analyst Camilo Lyon. “To that end, the company has had issues in keeping pace with demand. Our supply chain checks suggest capacity in 2013 will expand and as a result, traffic and conversion should improve, resulting in a reacceleration of comparable growth.’’
As noted by Stockhouse in February, 2012, Australian short seller John Hempton has described Lululemon as a gambit on female vanity.
He was quick to point out that in making that comment, he wasn’t being sexist. “It’s just that Lululemon is, after all, a designer and retailer of technical althletic apparel for yoga and other sweaty pursuits,’’ he said. “Not all of its customers are women, but we see few men shopping at the outlets.’’