Bank of America Merrill Lynch backs its Buy rating on Lululemon (LULU -0.3%) after sizing up the retailer ahead of the spring season.
Supplier checks run by the BAML indicate that Lululemon is investing in quality, while peers focus on costs.
"We believe LULU is well positioned for current trends that favor a blending of performance and fashion," updates the firm. Management is expected to issue solid (but conservative) guidance at Lululemon's investor day event next month.
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