Skip to content
Subscriber Only

Lululemon Rises After Analyst Predicts Profit-Margin Rebound

Lululemon Athletica Inc. Chief Executive Officer Laurent Potdevin At New Hong Kong Store
Photographer: Xaume Olleros/Bloomberg
Updated on

Lululemon Athletica Inc. shares gained 6.5 percent after Wells Fargo & Co. upgraded the stock, predicting that improvements the company has made to its supply chain should lower costs, reduce discounts and boost profit margins.

Ike Boruchow, a Wells Fargo analyst in New York, raised his rating on Lululemon to outperform, the equivalent of a buy, from a neutral recommendation. The Vancouver-based company made enhancements to its supply chain last year that could help boost margins 1.2 percent in the coming year, he said.