What to Expect When Lululemon Reports Earnings
Lululemon Athletica is scheduled to release its fiscal fourth-quarter financial results after the markets close on Wednesday.
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[cnxvideo id=”655426″ placement=”ros”]Lululemon Athletica Inc. (NASDAQ: LULU) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters are $1.01 in earnings per share (EPS) and $783.56 million in revenue. In the same period of last year, Lululemon posted EPS of $0.85 and $704.28 million in revenue.
Lululemon had a strong holiday season in both its store and digital channels, but since then the stock has steadily receded. Even after the company updated its fourth-quarter guidance in a positive way, the stock still has fallen since January.
At that time, the company said that it anticipates that net revenue will be in the range of $775 million to $785 million. That forecast is based on the company’s total comparable sales increase being in the mid-single digits on a constant dollar basis, and it also compares to prior guidance of $765 million to $785 million, also in the mid-single digits for total comparable sales on a constant dollar basis.
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Lululemon also forecast that its earnings will now be in the range of $0.99 to $1.01 per share. Its prior forecast was $0.96 to $1.01, based upon a 31.2% tax rate.
A few analysts weighed in on Lululemon prior to the release of the earnings report:
- Wedbush reiterated an Outperform rating with an $81 price target.
- Jefferies reiterated a Hold rating with a $64 price target.
- Credit Suisse also has a Hold rating with a $64 price target.
- MKM Partners reiterated a Buy rating with a $90 price target.
- Oppenheimer has a Buy rating with a $75 price target.
- Canaccord Genuity reiterated a Sell rating and lowered its target to $45 from $47.
Excluding Wednesday’s move, Lululemon has underperformed the broad markets with the stock down 2% year to date. Over the past 52 weeks, the stock is down 6%.
Shares of Lululemon were last seen up 1.5% at $64.66 on Wednesday, with a consensus analyst price target of $73.81 and a 52-week trading range of $54.00 to $81.81.
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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.
