KeyBanc downgrades Lulu's Fashion Lounge on challenging 2023
30/01/2023 11:45
** Brokerage KeyBanc Capital Markets downgrades fashion
brand Lulu's Fashion Lounge Holdings LVLU.O to "sector weight"
from "overweight"
** KeyBanc says it is cautious regarding the near-term setup
for LVLU
** "2023 is likely to be a challenging year for the company
as reopening tailwinds dissipate and difficult revenue compares
continue in 1H23," brokerage says
** Additionally, KeyBanc notes that inventory levels remain
high and consumer demand has softened, which will continue to
pressure margins in near-term as LVLU navigates a more
promotional environment
** Brokerage also raises PT on Tommy Bahama owner Oxford
Industries Inc OXM.N by $5 to $130; says co will see "solid
trends" across its brand portfolio
** "Combination of a higher-end customer coupled with strong
brands and a footprint that benefits from strong travel and
relocation trends should continue to dampen impact to OXM from
many of macro headwinds the broader space is experiencing" -
brokerage
** Up to Friday's close, LVLU stock had fallen ~66% in the
past 12 months, while OXM gained 33.4% in the same period
(Reporting by Granth Vanaik in Bengaluru)
((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))