Wells Fargo is bullish on Lululemon, according to the “Halftime Report” traders.
The company believes that Lululemon is a buy ahead of upcoming earnings.
The stock is currently trading at a significant historical discount compared to peers like Nike, which is trading at a historical premium.
While North America may still face some challenges, international sales are expected to be strong enough to offset them.
The company is still expected to achieve mid-teen revenue growth this year.
However, some analysts have concerns about the price of Lululemon’s products, such as $100 to $150 yoga pants.
Despite this, many believe that consumer spending on durable goods like yoga pants will hold up for a little while, even in the face of a potential recession or labor market loosening.
The market will know the results of Lululemon’s earnings report on March 28th.