Retail
Are Analysts Too Optimistic on Lululemon After Earnings?
Published:
Last Updated:
Lululemon Athletica Inc. (NASDAQ: LULU) released fiscal third-quarter financial results after markets closed Wednesday. Although this quarter was fairly positive, the stock sold off, after having nearly doubled so far in 2019. While this might be a great time for investors to lock in their gains and take profits, analysts mostly are calling for Lululemon to continue its massive run.
24/7 Wall St. has included some highlights from the earnings report, as well as what analyst are saying about the stock afterward.
The yoga-apparel retailer said that it had $0.96 in earnings per share (EPS) and $916 million in revenue, compared with consensus estimates that called for $0.93 in 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.
Overall, revenues increased 23% year over year and 23% on a constant currency basis. Direct to consumer net revenue represented 26.9% of total net revenue, compared to 25.3% last year.
Total comparable sales increased 16% from last year, or up 17% in constant currency. Comparable store sales increased by 10%, while direct to consumer net revenue increased by 11%.
Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $2.10 to $2.13 and revenue between $1.315 billion and $1.330 billion. Consensus estimates are calling for $2.13 in EPS and $1.32 billion in revenue for the quarter.
Here’s what analysts had to say about Lululemon after earnings:
Shares of Lululemon traded down about 2% on Friday to $220.68, in a 52-week range of $110.71 to $235.50. The consensus price target is $240.89.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.