Companies and Brands

How Analysts View Lululemon After Earnings

Chris Lange

Published: April 3, 2016 10:35 am

Last Updated: January 13, 2020 11:12 am

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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• 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.