Lululemon Gets Downward Dog on Guidance
Lululemon Athletica Inc. (NASDAQ: LULU) reported its most recently quarterly earnings after the markets closed on Wednesday. The company posted $0.99 in earnings per share (EPS) and $789.9 million in revenue, versus consensus estimates from Thomson Reuters that called for…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
[cnxvideo id=”655424″ placement=”ros”]Lululemon Athletica Inc. (NASDAQ: LULU) reported its most recently quarterly earnings after markets closed on Wednesday. The company posted $0.99 in earnings per share (EPS) and $789.9 million in revenue, versus consensus estimates from Thomson Reuters that called for $1.01 in EPS and $783.56 million in revenue. The fiscal fourth quarter from last year had $0.85 in EPS and $704.28 million in revenue.
Total comparable sales, which includes store sales and direct to consumer sales, increased 8%, or by 7% on a constant dollar basis. Comparable store sales rose by 6%.
For the fiscal first quarter, the company expects to see EPS in the range of $0.25 to $0.27 and revenues in the range of $510 million to $515 million. There are consensus estimates that are forecasting $0.39 in EPS and $552.35 million in revenue.
[nativounit]
In terms of guidance for the 2017 fiscal year, management has said that it expects EPS in the range of $2.26 to $2.36 and revenues in the range of $2.55 billion to $2.60 billion. The consensus estimates called for $2.57 in EPS and $2.62 billion in revenue.
On the books, cash and cash equivalents totaled $734.85 million at the end of the quarter, versus $501.48 million in the same period last year.
Laurent Potdevin, CEO of Lululemon, commented:
2016 marks a milestone year where our successful execution against long-term strategies returned the company to positive operating income growth for the first time in three years. These results reflect our strong brand and solid foundation now in place to drive our future performance.
He added:
Although we’ve had a slow start to 2017, our teams are passionately committed to delivering on our robust plans across product innovation, digital, North America and international as we realize our ambitious vision for the future.
Shares of Lululemon closed Wednesday up 4% at $66.30, with a consensus analyst price target of $73.81 and a 52-week trading range of $54.00 to $81.81. Following the release of the earnings report, the stock was down 16% at $55.64 in the after-hours trading session.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
