By Sam Boughedda
Investing.com -- Lululemon Athletica Inc (NASDAQ:LULU) said Tuesday that it will expand its Lululemon Like New across the U.S.
Like New is the brand’s first trade-in and resale program. The company said that starting April 22, Like New will be available to customers across the U.S., following a successful two-state pilot in 2021.
"The program reinvests 100 percent of profits to support Lululemon’s commitments outlined in its Impact Agenda, including making 100 percent of products with sustainable materials and end-of-use solutions by 2030," the company said in its press release.
Following the news, Stifel analyst Jim Duffy said in a note to clients, quoted by TheFly, that the program "brings both economic and environmental benefit," labeling it "strategic and shareholder beneficial."
Duffy believes the program will expand the consumer audience for the brand, generating margin accretive incremental revenue.
The analyst reiterated a buy rating and a $500 price target on the stock.
Lululemon stock closed Tuesday's session up 2%.