Lululemon is rebounding from Omicron already with stronger store traffic
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BTIG stays bullish on Lululemon (NASDAQ:LULU) after factoring in the retailer's guidance update at the ICR Conference.
Analyst Camilo Lyon: "While Omicron dealt a blow to LULU's store performance at the worst possible time (two very high volume weeks before Christmas) just as the window for e-commerce shipments to arrive in time for the holiday was closing, the good news is traffic has already started rebounding as the worst of Omicron infections appears to have peaked."

It is noted that LULU's digital business remains robust, which is seen underscoring the reason behind the shortfall is Omicron related and nothing more specific to demand for LULU gear. Importantly, LULU stores are said to be trending positively again.
BTIG keeps a Buy rating on Lululemon (LULU) and assigns a price target of $489, which is derived from a blended average of 50X the firm's F22 EPS estimate, 35X the F22 EBITDA estimate and discounted free cash flow.
Shares of LULU fell 1.91% after yesterday's ICR presentation and guidance update.