Company News

BUZZ-Susquehanna sees growth for Lululemon, VF, Canada Goose in China

** Susquehanna analyst Sam Poser sees no impact on Lululemon Athletica, Canada Goose Holdings Ltd and VF Corp in China, shortly after Apple Inc cut forecast citing sales weakness in the region

** Poser says all 3 cos are underpenetrated in China and has a great deal of white space there

** GOOS entered China in 2018, 4 pct of LULU’s store base is in China, and VFC generated ~5 pct of total sales in China in 2017, Poser says

** But, ~20 pct of Apple’s rev comes from China, and the entire rev shortfall in China was the result of weak iPhone sales, he adds

** “We are confident that innovation and brand strength will provide a long runway for growth in China and other geographies,” Poser says

** “Time is now to buy some best-in-class companies,” Poser says, cites cos’ potential to drive long-term sales, margin and earnings growth well above competition

** Poser says GOOS, LULU, VFC have benefited from a robust holiday shopping season, and have likely outperformed the most recent outlook provided

** Last year, LULU rose 54.7 pct, VFC down 3.6 pct, GOOS up 50.3 pct, vs. S&P 500’s 6.2 pct fall (Reporting by Nivedita Balu in Bengaluru)