LULU earnings demonstrate their high-end positioning in the marketplace. We rate LULU a Buy upon consolidation

Lululemon $Lululemon Athletica(LULU.US)$, a specialty retailer based in Vancouver, Canada, continues to exhibit strong performance and growth prospects. Known for their high-quality athletic apparel, Lululemon has experienced robust sales growth, particularly in the wake of a challenging first quarter for its peers. In 1Q, Lululemon surpassed expectations with earnings per share of $2.28, beating consensus estimates and leading to raised fiscal guidance for 2023. Their innovative product offerings, successful international expansion, and flourishing e-commerce platform have fueled growth. The company's inventory control has also been better than anticipated, which is expected to align with sales by the second half of the year. However, potential challenges may include operational stumbles during international expansion, or a slowdown in consumer demand which could impact sales and lead to multiple compression. Despite these risks, Lululemon stands as a compelling growth story in retail.