- Lululemon cuts FY net revenue forecast to $10.38 billion – $10.48 billion, below previous forecast of $10.7 billion – $10.8 billion. Analysts estimated $10.62 billion.
- FY EPS forecast now $10.375 – $10.475, significantly down from initial expectations of $14.27 – $14.47. Estimated EPS was $14.00.
- Q3 net revenue forecast at $2.34 billion – $2.37 billion, short of the $2.41 billion estimate.
- Q3 EPS forecast between $2.68 and $2.73; analysts projected $2.76.
- Q2 EPS reported at $3.15, beating the estimate of $2.95.
- Q2 net revenue came in at $2.37 billion, slightly below the $2.41 billion estimate.
- Total comparable sales in constant currency rose 3%, missing the 5.63% estimate.
- Inventory for Q2 stood at $1.43 billion, lower than the $1.5 billion estimate.
- Shares declined by 6.9% in post-market trading, closing at $241.13 on 20,782 shares traded.
- Market sentiment: 23 buys, 12 holds, 4 sells.
- Conference call scheduled at 4:30 p.m. Toronto time.
Lululemon Athletica on Smartkarma
Analysts on Smartkarma have varied views on Lululemon Athletica. Value Investors Club recommends shorting LULU US, with a price target of USD300 above USD410 share price. Their bearish sentiment suggests a potential revenue miss and an overvalued stock. Meanwhile, Baptista Research takes a bullish stance, highlighting Lululemon’s 10% revenue growth in Q1 2024, driven by international market expansion, particularly in China. On the other hand, MBI Deep Dives notes concerns around LULU’s US sales growth of only 2%, overshadowed by strong international performance, while Investment Talk points out Lululemon’s decelerating revenue growth rate, causing stock price decline. Baptista Research also emphasizes positive operational results and revenue growth in Lululemon’s recent earnings report.
A look at Lululemon Athletica Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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. is a company that designs and sells athletic clothing for various activities like yoga, running, and general fitness. It is known for its fitness pants, shorts, tops, and jackets. The outlook for Lululemon Athletica based on Smartkarma Smart Scores indicates positive signs for the long term. With a solid Growth score of 4 and Resilience score of 4, the company shows promising potential for expansion and ability to withstand challenges. Furthermore, a Momentum score of 3 suggests the company is moving in a positive direction. Although the Value score is lower at 2 and Dividend score is at 1, the overall outlook appears optimistic for Lululemon Athletica.
In conclusion, lululemon athletica Inc. demonstrates strong potential for long-term growth and resilience in the market based on the Smartkarma Smart Scores. While the company may not score as high on Value and Dividend factors, its Growth and Resilience scores of 4 each indicate a promising future. Additionally, the Momentum score of 3 suggests positive momentum for the company going forward. For investors looking for a company with growth potential in the athletic clothing sector, Lululemon Athletica seems to be on a positive trajectory.
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.
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