Retail

What to Expect When Lululemon Reports After the Close

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Lululemon Athletica Inc. (NASDAQ: LULU) is scheduled to release its fiscal fourth-quarter results after the markets close on Wednesday. The consensus estimates call for $1.74 in earnings per share (EPS) and $1.15 billion in revenue. In the same period of last year, it said it had $1.33 in EPS and $928.8 million in revenue.

The company issued guidance for the quarter back in January. Lululemon said that it expects to see EPS in the range of $1.72 to $1.74 and revenue between $1.14 billion and $1.15 billion. Comparable sales are expected to increase in the mid-to-high teens.

Lululemon’s previous guidance called for EPS of $1.64 to $1.67 and revenue of $1.115 billion to $1.125 billion, with comparable sales increasing in the high-single to low-double digits.

At that time, Calvin McDonald, CEO of Lululemon, commented:

The momentum in our business remained strong throughout the holiday season, reflecting the ongoing success of our product offerings and our connection with guests around the globe. I speak for the entire leadership team in thanking all our teams around the world for delivering a strong 2018.

Excluding Wednesday’s move, Lululemon had outperformed the broad markets, with its stock up about 18% year to date. In the past 52 weeks, the stock was actually up about 80%.

A few analysts weighed in on Lululemon ahead of the report:

  • Wedbush has a Neutral rating and a $155 price target.
  • Nomura has a Neutral rating with a $157 price target.
  • MKM Partners has a Buy rating with a $179 price target.
  • Wolfe Research has an Outperform rating with a $182 target.
  • Buckingham Research has a Buy rating.

Shares of Lululemon were last seen up less than 1% at $144.21, in a 52-week range of $83.06 to $164.79. The consensus price target is $162.89.

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