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Keybanc Capital Markets is Lulu’s Fashion Outlet Holdings (NASDAQ: LVLU) on Monday.
Analysts at the company also indicated less enthusiasm for the name as comparisons through 2023 are tougher. As a lingering inventory overhang.
“Inventories remain high at +110% year-over-year (as of the third quarter) and consumer demand is softening, which will continue to weigh on margins. [near-term] As the company navigates a more promotional environment,” the team explained. “The LVLU [long-term] Improve inventory positioning and seek a more stable retail environment when opportunities arise within the testing and reordering model [near-term] to build confidence. ”
As such, the team has lowered its rating from overweight to sector weight. Keybanc analysts also lowered their 2023 net revenue forecast to $458.1 million from $548.2 million and their adjusted EBITDA forecast to $35.6 million from $55.6 million.
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