Stifel analyst Jim Duffy reiterated a Buy rating and $445.00 price target on Lululemon Athletica Inc. (NASDAQ: LULU) after the company issued guidance for revenue and gross margin that was above prevailing consensus but the earnings guide was below (5% at the midpoint). The profit pressure is entirely reflective of dilution from Mirror.

The analyst stated "We remain constructive on Mirror momentum and opportunities. The lifetime value economic return justification, however, isn’t immediately evident in reported financials. We view the Mirror marketing as strategic and suggest investors focus on the big picture. LULU remains uniquely positioned at the intersection of powerful secular trends (growing global concern for health/holistic view of fitness, increasing casualization of fashion, premiumization, and digital at home fitness). In combination with the compelling economic model (high-teens+ revenue growth, mid-thirties+ ROIC), we view LULU shares as a unique large cap growth investment vehicle."

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Shares of Lululemon Athletica Inc. closed at $313.50 yesterday.