CITIC Securities: maintain a "buy" rating on Lululemon (06110) with a target price of 3.5 Hong Kong dollars.

According to the InnoVentures Financial APP, Citic Securities released a research report stating that the sales amount of Top Sports in FY3Q26 declined by high single digits year-on-year (corresponding to a 2-year/3-year CAGR of -6%/-1%), the discount in all channels slightly deepened year-on-year but narrowed month-on-month, and the inventory and age structure continued to improve. The company revised down its full-year guidance, and there may be a slight deviation from the original guidance of achieving a flat year-on-year net profit for the full year. In the short term, the industry's customer flow performance is weak, and there is pressure on all-channel discounts and sales. In the medium to long term, with the recovery of industry inventory health, the recovery of sales momentum of main brands such as Nike, SOAR & Norrna & Norda, and the continuous volume growth of new exclusive brands in the running and outdoor categories, the company is expected to gradually return to a stable growth track. Considering the company's past high dividends and high dividend yield, a 15X PE for the company's 2027 fiscal year is given, with a target price of 3.5 Hong Kong dollars, and the rating of "hold" is maintained.