Retail

What to Expect From Lululemon Earnings

Chris Lange

Published: March 29, 2016 1:35 pm

Last Updated: January 13, 2020 11:24 am

Lululemon Athletica Inc. (NASDAQ: LULU) is scheduled to report its fiscal fourth-quarter financial results before the markets open on Wednesday. The consensus estimates from Thomson Reuters are $0.80 in earnings per share (EPS) on $693.38 million in revenue. In the same period of the previous year, the company posted EPS of $0.78 and $602.49 million in revenue.

This company designs, manufactures and distributes athletic apparel and accessories for women, men and female youth. It operates through two segments, Corporate-Owned Stores and Direct to Consumer. The company offers pants, shorts, tops and jackets for healthy lifestyle activities and athletic pursuits, such as yoga, running and general fitness, as well as dance-inspired apparel for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats and water bottles.

Lululemon sells its products through a chain of corporate-owned and operated retail stores; a network of wholesale channels, such as yoga studios, health clubs and fitness centers; and outlets and warehouse sales, as well as directly to consumer through Lululemon and Ivivva e-commerce sites and showrooms. As of February 1, 2015, the company operated 302 corporate-owned stores under the Lululemon Athletica and Ivivva Athletica brand names in the United States, Canada, Australia, New Zealand, the United Kingdom and Singapore.

A few analysts weighed in on Lululemon ahead of its earnings report:

• Deutsche Bank reiterated a Hold rating with a $53 price target.
• Canaccord Genuity has a Hold rating with a $59 price target.
• Wedbush reiterated an Outperform rating with a $72 price target.
• RBC Capital has an Outperform rating with a $77 price target.
• Sanford Bernstein has a Market Perform rating with a $55 price target.

So far in 2016, Lululemon has outperformed the broad markets, with the stock up 15%. Over the past 52 weeks, the stock is actually down 5%.

Shares of Lululemon were trading at $60.97 On Tuesday, with a consensus analyst price target of $60.74 and a 52-week trading range of $43.14 to $70.00.