Retail

What to Expect From Lululemon Earnings

lululemon athletica store
Source: courtesy of Lululemon Athletica
Lululemon Athletica Inc. (NASDAQ: LULU) is scheduled to report its fiscal second-quarter financial results before the markets open on Thursday. The consensus estimates from Thomson Reuters call for $0.33 in earnings per share (EPS) on $445.76 million in revenue. The same period from the previous year had $0.33 in EPS on $390.71 million in revenue.

This company is a yoga-themed athletic apparel retailer, which was a top stock from March 2009 to May 2012. But from May 2012 to June 2014 the company suffered from upheavals at the CEO slot and other corporate issues that bogged down growth. The company finally achieved comparable-store sales growth of 5% at brick-and-mortar locations recently, its first quarter of positive growth for the metric in more than a year. At the same time, Lululemon demonstrated broad strength from not only its core women’s line, but also in its men’s business and kid-centric ivivva brand.

In the last report, same-store sales on a currency neutral basis were better than expected. Additionally, the company provided guidance for high single-digit same-store sales growth for this quarter. The specialty retailer does an incredible 19% of total store sales via e-commerce. That is the second-highest among companies in the luxury and accessories retail category.

Ahead of its earnings a few analysts weighed in on Lululemon:

  • Deutsche Bank reiterated a Hold rating with a $70 price target.
  • Canaccord Genuity reiterated a Hold rating with a $60 price target.
  • Sterne Agee CRT reiterated a Buy rating with a $77 price target.
  • Wedbush reiterated an Outperform rating with a $78 price target.

So far Lululemon shares have outperformed the market in 2015, year to date shares are up 18% but over the past 52-weeks shares are up over 68%.

Shares of Lululemon closed Wednesday down 2.7% at $64.11 on its 52-week trading range of $37.81 to $70.00. The stock has a consensus analyst price target of $68.59.

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