Retail

What to Expect When Lululemon Reports After the Close

Chris Lange

Published: December 11, 2019 11:55 am

Last Updated: March 13, 2020 10:19 pm

Lululemon Athletica Inc. (NASDAQ: LULU) is scheduled to release its fiscal third-quarter financial results after the markets close on Wednesday. The consensus estimates are calling for $0.93 in earnings per share (EPS) and $899.66 million in revenue. The same period of last year reportedly had $0.75 in EPS and $747.66 million in revenue.

The company previously issued guidance for the fiscal third quarter calling for EPS in the range of $0.90 to $0.92 and revenue between $880 million and $890 million.

In the fiscal second quarter, revenues increased 22% year over year and 23% on a constant currency basis. Direct to consumer net revenue represented 24.6% of total net revenue, compared to 23.1% last year.

Also at that time, total comparable sales increased 15% from last year, or up 17% in constant currency. Comparable store sales increased 10%, while direct to consumer net revenue increased by 30%.

Following the most recent earnings report, analysts were significantly impressed that Lululemon accelerated same-store sales in an increasingly volatile macro environment in the second quarter. Some even called the guidance conservative.

Excluding Thursday’s move, Lululemon had outperformed the broad markets, with its stock up about 89% year to date. In the past 52 weeks, the stock was up roughly 100%.

Here’s what analysts had to say about Lululemon ahead of the report:

• Wedbush has a Neutral rating and a $225 price target.
• MKM Partner’s Buy rating comes with a $255 price target.
• Merrill Lynch has a Buy rating with a $268 target price.
• Deutsche Bank has a Buy rating and a $247 target price.
• Piper Jaffray rates it as Overweight with a $244 price target.
• William Blair has a Buy rating.
• UBS has a Neutral rating with a $230 target.

Shares of Lululemon traded up about 1% Thursday to $231.81, in a 52-week range of $110.71 to $233.53.