Lululemon Athletica Inc. (NASDAQ: LULU) reported its fiscal fourth-quarter financial results after the markets closed on Thursday. Although the company posted solid results for the quarter, market headwinds seem to be taking over here and pushing shares lower. Despite this, analysts were fairly positive on Lululemon stock and where it can go from here.
24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying after the fact.
For the fiscal fourth quarter, Lululemon posted $2.28 in earnings per share (EPS) and $1.4 billion in revenue. Analysts were calling for $2.24 in EPS and $1.38 billion in revenue. The same period of last year reportedly had $1.65 in EPS and $1.17 billion in revenue.
During the quarter, total comparable sales increased by 20%. This consisted of comparable store sales increasing 9% and direct to consumer net revenue increasing 41%.
Lululemon did not give any guidance due to the impact of the COVID-19 pandemic. Management said that it would provide additional updates as the situation warrants. Analysts so far expect $5.07 in EPS and $4.34 billion in revenue for the fiscal year.
The company ended fiscal 2019 with $1.1 billion in cash and cash equivalents, compared to $881.3 million at the end of fiscal 2018.
Here’s what analysts are saying about Lululemon:
- RBC raised its price target to $225 from $195.
- Wedbush reiterated a Hold rating but lowered its target to $200 from $245.
- Raymond James reiterated it as a Strong Buy but cut its price target to $250 from $300.
- BMO Capital Markets reiterated it as Market Perform and lowered its target to $175 from $231.
- Citigroup reiterated a Buy rating and raised its price target to $230 from $190.
- Stifel reiterated a Buy rating and lowered its target to $224 from $273.
- Barclays reiterated an Overweight rating with a $209 price target.
Lululemon stock traded down about 7% on Friday, at $186.95 in a 52-week range of $128.85 to $266.20. The consensus price target is $231.24.
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