What to Expect When Lululemon Reports After the Close

Lululemon Athletica Inc. (NASDAQ: LULU | LULU Price Prediction) 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.

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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.

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