Why Analysts Are Chasing Lululemon Even Higher
Overall, Lululemon Athletica had a solid report, and analysts rewarded the firm by hiking their price targets.
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When Lululemon Athletica Inc. (NASDAQ: LULU) reported its most recent quarterly results late on Tuesday, overall the yoga apparel manufacturer had a solid report. Analysts have rewarded the firm by hiking their price targets.
24/7 Wall St. has included some brief highlights from the earnings report, as well as what analysts are saying after the fact.
The firm posted $1.33 in earnings per share (EPS) on $928.8 million in revenue. Consensus estimates had called for $1.27 in EPS on revenue of $911.42 million. The same period of last year reportedly had EPS of $1.00 and $789.94 million in revenue.
During the quarter, total comparable sales increased 12%, or increased 11% on a constant dollar basis. Separately, comparable store sales increased 2%, or increased 1% on a constant dollar basis, and direct to consumer net revenue increased 44%, or increased 42%.
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Looking ahead to the fiscal first quarter, the firm expects net revenue to be in the range of $612 million to $617 million, based on a total comparable sales increase in the low double digits on a constant dollar basis. Also, EPS is expected to be between $0.44 and $0.46. The consensus estimates call for EPS of $0.40 and $585.9 million in revenue for the quarter.
Here’s what analysts had to say after the announcement:
- Susquehanna raised its price target to $97 from $93.
- Bernstein raised its price target from $72 to $80.
- RBC raised its target price to $92 from $90.
- Instinet raised its price target to $90 from $86.
- Jefferies has a Hold rating and raised its target to $82 from $72.
- Canaccord Genuity has a Hold rating and raised its target to $85 from $75.
- Deutsche Bank has a Buy rating and raised its price target from $95 to $96.
- Barclays has an Overweight rating and raised its target to $100 from $95.
- Cowen has an Outperform rating and raised its price target to $96 from $90.
- JPMorgan has an Overweight rating and raised its target price to $95 from $92.
- Credit Suisse reiterated an Outperform rating and raised its target to $98 from $96.
- Wells Fargo rates it at Market Perform and raised its price target from $79 to $82.
- B. Riley has a Neutral rating and raised its price target to $83 from $78.
- Merrill Lynch has a Buy rating and raised its price objective to $95 from $90.
- Needham reiterated a Buy rating and raised the target to $100 from $95.
Shares of Lululemon were last seen up about 10% at $86.80 on Wednesday, with a consensus analyst price target of $84.33 and a 52-week trading range of $47.26 to $87.98.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
