Lululemon Athletica Inc hasn’t convinced this analyst

Lululemon Athletica has historically run very tight seasonal calendars, so shifting product from one quarter to the next might lead to a disappointing response from consumers

The market absolutely loved Lululemon Athletica Inc.’s Q1 results, sending shares of the apparel retailer up 11 per cent on Tuesday after it beat analysts’ estimates for that eighth straight quarter and boosted its outlook for that year.

But it’s not all rosy at Vancouver-based Lululemon, at least not within the opinion of Camilo Lyon at Canaccord Genuity.

His biggest concern is the company’s elevated inventory levels, which rose 31 percent in the first quarter compared to sales growth of 10 per cent.