What Analysts Are Saying About Lululemon Stock After Earnings

By Chris Lange Published Mar 27, 10:24AM EDT

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Lululemon Athletica Inc. (NASDAQ: LULU | LULU Price Prediction) reported its fiscal fourth-quarter financial results after the markets closed on Thursday. Although the company posted solid results for the quarter, market headwinds seem to be taking over here and pushing shares lower. Despite this, analysts were fairly positive on Lululemon stock and where it can go from here.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying after the fact.

For the fiscal fourth quarter, Lululemon posted $2.28 in earnings per share (EPS) and $1.4 billion in revenue. Analysts were calling for $2.24 in EPS and $1.38 billion in revenue. The same period of last year reportedly had $1.65 in EPS and $1.17 billion in revenue.

During the quarter, total comparable sales increased by 20%. This consisted of comparable store sales increasing 9% and direct to consumer net revenue increasing 41%.

Lululemon did not give any guidance due to the impact of the COVID-19 pandemic. Management said that it would provide additional updates as the situation warrants. Analysts so far expect $5.07 in EPS and $4.34 billion in revenue for the fiscal year.

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The company ended fiscal 2019 with $1.1 billion in cash and cash equivalents, compared to $881.3 million at the end of fiscal 2018.

Here’s what analysts are saying about Lululemon:

RBC raised its price target to $225 from $195.
Wedbush reiterated a Hold rating but lowered its target to $200 from $245.
Raymond James reiterated it as a Strong Buy but cut its price target to $250 from $300.
BMO Capital Markets reiterated it as Market Perform and lowered its target to $175 from $231.
Citigroup reiterated a Buy rating and raised its price target to $230 from $190.
Stifel reiterated a Buy rating and lowered its target to $224 from $273.
Barclays reiterated an Overweight rating with a $209 price target.

Lululemon stock traded down about 7% on Friday, at $186.95 in a 52-week range of $128.85 to $266.20. The consensus price target is $231.24.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.