What to Expect When Lululemon Reports After the Close

Lululemon Athletica Inc. (NASDAQ: LULU | LULU Price Prediction) is scheduled to release its fiscal second-quarter financial results after the markets close on Thursday. The consensus estimates are calling for $0.89 in earnings per share (EPS) and $845.65 million in revenue. The same period of last year reportedly had $0.71 in EPS and $723.5 million in revenue.

The company’s previous guidance for this quarter said that Lululemon expects to see EPS in the range of $0.86 to $0.88 and net revenue between $825 million and $835 million.

In the fiscal first quarter, Lululemon reported that direct to consumer net revenue represented 26.8% of total net revenue, compared to 24.3% for the first quarter of fiscal 2018. Direct to consumer net revenue increased 33% year over year, or increased 35% on a constant dollar basis

At the same time, comparable store sales increased 6%, or 8% on a constant dollar basis. Based on a shifted calendar, total comparable sales — including direct to consumer — increased 14%, or increased 16% on a constant dollar basis.

Excluding Thursday’s move, Lululemon has outperformed the broad markets with its stock up over 48% year to date. In the past 52 weeks, the stock is up only 16.6%.

Here’s what analysts had to say about Lululemon ahead of the report:

• MKM Partners has a Buy rating and a $217 price target.
• Oppenheimer’s Buy rating comes with a $225 price target.
• Merrill Lynch has a Buy rating with a $200 target price.
• Briley has a Neutral rating and a $176 target price.
• Stifel’s Buy rating comes with a $238 price target.
• Argus has a Buy rating with a $200 price target.

Shares of Lululemon traded up about 3% Thursday to $186.28, in a 52-week range of $110.71 to $194.25.

Contact [email protected] for any questions or corrections.