Lululemon Athletica (LULU) Earnings: 2Q Net Revenue Forecast Misses Estimates

Lululemon Athletica on Smartkarma

Analyst coverage of Lululemon Athletica on Smartkarma reveals contrasting views. Investment Talk‘s report, “Why Lululemon Isn’t Under Armour,” expresses a bearish sentiment citing an implied 11.5% revenue growth for 2024—a significant slowdown from previous years. Despite Lululemon’s positive FY23 results, guidance led to a notable share price decline of approximately 29% this year. This drop positions Lululemon as the 8th worst-performing stock in the S&P 500, showcasing investor concerns about future growth prospects.

On the other hand, Baptista Research offers a bullish outlook in their research reports. They highlight Lululemon Athletica‘s positive Q4 2023 earnings, emphasizing revenue increases in various regions. Total revenue surged by 16% for the quarter, with substantial growth seen in the Americas and Mainland China. Additionally, Baptista Research underscores Lululemon’s success in digital sales, commanding 41% of total revenue in Q3—an impressive feat driven by new product launches and store expansion strategies.

A look at Lululemon Athletica Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

lululemon athletica Inc., a company that designs and sells athletic clothing globally, holds a mixed bag of Smart Scores across various key factors. With a high Growth score of 5, indicating strong potential for future expansion, the company seems poised for solid long-term development. Additionally, its Resilience score of 4 reflects a durable business model that can weather economic uncertainties. However, their Value and Momentum scores of 2 each suggest a more tempered outlook as compared to their Growth and Resilience metrics. The low Dividend score of 1 may be a deterrent for income-seeking investors but could indicate reinvestment of profits back into the business for future growth.

Considering the Smart Scores for Lululemon Athletica, investors may find confidence in the company’s ability to sustain growth and navigate market challenges, as indicated by the high scores in Growth and Resilience. While there might be room for improvement in areas such as Value and Momentum, the overall outlook appears promising for those focused on long-term potential in the athletic clothing sector. Lululemon’s dedication to producing fitness-oriented apparel for a global customer base positions them well for continued success and ongoing expansion in the athletic wear market.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma