Nike, Lululemon started at Sell as Redburn sees international sales risk
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Both Nike (NYSE:NKE) and Lululemon Athletica (NASDAQ:LULU) were started at Sell at Redburn ahead of the two apparel manufacturers late-March earnings results.

While both were applauded as âgreatâ and âfantasticâ brands, revenue growth for each remains in question, especially internationally. The premium valuation for each leaves downside more pronounced as well, per the analysts.

âInternational growth and category expansion bring extra complexity, cost and capital,â the initiation of Lululemon explained. âThis next stage will challenge the company's ability to maintain the current Luxury Goods-type margins and consequently the degree of premium valuation.â

The team assigned a $257 price target to the stock alongside the Sell rating. 

Nike (NKE) was also a new Sell, driven largely by international concerns. In Nikeâs case, the sales trends are most concerning in China which must make a âsharp inflectionâ to offset slower expected growth in North America. Margins are also expected to disappoint as the company continues to invest in DTC efforts and promotional activity persists. 

The Oregon-based footwear and apparel giant was started at Sell. Redburn assigned a $100 price target to the stock.
Read more on the earnings expectations for Nike next week.