Retail

Lululemon, A Breather on Earnings (LULU)

Lululemon Athletica Inc. (NASDAQ: LULU) may be taking a breather after earnings. The yoga-themed near-monopoly beat earnings but it looks as though the revenues may have been soft compared to what some investors might have been hoping for after it raised guidance on multiple occasions.  Earnings were $0.64 EPS versus the Thomson Reuters consensus of $0.57 EPS.  Revenues did rise by almost 53% to $245.4 million against estimates of $239.3 million.

For its first quarter, guidance was put at $0.36 to 0.38 EPS and revenues were put in a range of $175 to $180 million.  Thomson Reuters has estimates of $0.37 EPS and $180.56 million in revenues.

For its fiscal year, Lululemon sees earnings in a range of $1.90 to $2.00 EPS and $885 to $900 million in revenues.  Thomson Reuters has estimates of $1.88 EPS and $896.35 million in revenues.

One thing the company brought up was that sell-thru figures left the company with short term unmet demand and a low inventory position. It also noted a growing guest demand for its products that will allow it to accelerate the store and e-commerce growth.  Here is where the company is becoming a standout: it said something about being “the number one women’s athletic wear brand.”

The company did note cost pressures for this year ahead but its guidance reflects its outlook.  Lululemon shares closed at $79.35 yesterday against a 52-week range of $31.08 to $85.28, but shares are indicted down slightly by 1.75% at $77.95 in active pre-market trading.  This is just not enough of a drop for any downward dog jokes.

As a reminder, here was the most recent short interest data: the end of February was a reading of 6.59 million, and that has actually been in a state of decline.  That was actually the lowest short interest in the last year.

JON C. OGG

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.