Lululemon Performing Slightly Better Than Plan, Checks Show

• In a report issued Monday, MKM Partners’ Managing Director Roxanne Meyer shared a look into the softlines retail industry.
• The fourth quarter "looks to be mixed." Express, Inc. (NYSE: EXPR) is one of the few companies in the segment that remains less promotional than last year.
• The analyst shared some thoughts on Lululemon Athletica inc. (NASDAQ: LULU), which she believes is "performing in-line or slightly better than plan; enough to make the stock work near-term."

Roxanne Meyer shared a look into the softlines retail segment. Among other issues, the analyst went into Lululemon's performance, which she believes to be in-line with (or slightly ahead of) expectations.

In the women's segment, online clearance breadth declined versus last week, and was tilted toward Runderful half zip and Down For a Run jackets and vests. Men's clearance, on the other hand, was skewed toward hoodies and light jackets.

"We continue to see different styles vs. prior weeks in clearance, likely indicating positive sell throughs," the report assured, adding that the analysts did not notice any clearance merchandise mixed within the regular collection. The analysts pointed out that they saw an average markdown on clearance merchandise of 45 percent.

Online, the experts noted 76 and 33 SKU's in the "We Made Too Much" section for both women and men, respectively, on Saturday. On Sunday, the figures fell to 66 and 31, correspondingly.

Lululemon Ahead Of ICR

At ICR, MKM looks for:

• "Continued investor focus on the margin progression over the next six quarters as supply chain initiatives ramp."
• A review of longer-term margin headwinds and tailwinds assumptions.
• A review of inventory targets and how management intends to achieve them without degrading margins.
• Product initiatives that could serve as catalysts for comp growth this year.
• An update on the company’s international strategy and “appreciation of performance metrics.”
• An update on the men's and Ivivva segments.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.