How Analysts View Lululemon After Earnings
Many analysts weighed in on Lululemon Athletica after its earnings report, speculating where it can go from here.
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Lululemon Athletica Inc. (NASDAQ: LULU) reported fourth-quarter and full-year 2015 results before markets opened Wednesday. Overall the results were positive and very well received by investors. As a result, many analysts weighed in on the company, speculating where it can go from here.
For the quarter, the yoga gear maker reported diluted earnings per share (EPS) of $0.85 on revenues of $704.3 million, compared with diluted EPS of $0.78 on revenues of $602.5 million in the same period a year ago. The consensus estimates called for EPS of $0.80 on revenues of $693.38 million.
Total comparable sales for the quarter, including direct sales to consumers, increased by 11% year over year on a constant dollar basis. Same-store sales rose 5% and direct to consumer sales rose 33%, also on a constant dollar basis. Direct to consumer sales now make up 20.8% of Lululemon’s total sales, up from 19% in the same period last year.
In mid-January the company raised its revenue guidance to a new range of $690 million to $695 million for the quarter. EPS guidance was also increased to $0.78 to $0.80. At the time, CEO Laurent Potdevin said Lululemon had a “very successful holiday season,” and he was right.
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A fair number of analysts weighed in on this company after the earnings report:
- Canaccord Genuity has a Hold rating and raised its price target from $59 to $70.
- Deutsche Bank has a Hold rating and raised its price target to $60 from $53.
- Goldman Sachs has a sell rating and raised its price target to $48 from $43.
- Nomura has a Buy rating and raised its price target from $59 to $72.
- RBC has an Outperform rating and raised its price target to $75 from $65.
- Suntrust Robinson has a Buy rating and raised its price target to $79 from $66.
- Wedbush has an Outperform rating and raised its price target from $72 to $80.
- Oppenheimer raised its price target to $80 from $70
- UBS has a Neutral rating and raised its price target to $69 from $60.
- Jefferies has a Buy rating and raised its price target from $71 to $75.
- Credit Suisse has an Outperform rating and raised target to $76 from $66.
- Sterne Agee CRT has a Buy rating and raised its price target to $75 from $68.
- D.A. Davidson has a Neutral rating and raised its price target to $70 from $62.
- Mizuho Securities has a Neutral rating and raised its price target from $50 to $65.
- Baird has an Outperform rating and raised its price target to $76 from $71.
Shares of Lululemon ended last week at $68.69, with a consensus analyst price target of $68.94 and a 52-week trading range of $43.14 to $70.00.
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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.
