- FY Net Revenue Forecast: Cut to $10.38 billion – $10.48 billion (previously $10.7 billion – $10.8 billion).
- FY EPS Forecast: Lowered to $13.95 – $14.15 (previously $14.27 – $14.47).
- Third Quarter Revenue Forecast: $2.34 billion – $2.37 billion (estimate $2.41 billion).
- Third Quarter EPS Forecast: $2.68 – $2.73 (estimate $2.76).
- Second Quarter EPS: $3.15 (estimate $2.95).
- Second Quarter Net Revenue: $2.37 billion (estimate $2.41 billion).
- Total Comp Sales (constant currency): +3% (estimate +5.63%).
- Gross Margin: 59.6% (estimate 57.7%).
- Operating Margin: 22.8% (estimate 21.1%).
- Inventory: $1.43 billion (estimate $1.5 billion).
- Total Locations: 721 (estimate 723.65).
- Americas Comp Sales (constant currency): -2%.
- International Comp Sales (Ex-Fx): +22%.
- Share Repurchase: Company bought back 1.9 million shares for $583.7 million.
- Analyst Ratings: 23 buys, 12 holds, 4 sells.
Lululemon Athletica on Smartkarma
Analyst coverage on Lululemon Athletica paints a diverse picture of the company’s prospects. According to Value Investors Club, there is a bearish sentiment with a recommendation to short LULU US above $410, targeting $300 before the next earnings in May 2024. Conversely, Baptista Research takes a bullish stance, highlighting Lululemon’s 10% revenue growth in Q1 2024, particularly in international markets like China. MBI Deep Dives also leans bullish post 1Q’24 update, emphasizing growth in international markets offsetting weaker US sales. Meanwhile, Investment Talk expresses bearish views, noting a notable revenue growth deceleration and share price decline following FY23 results.
Lululemon’s performance and strategies are being scrutinized by analysts with varied sentiments, providing investors with different perspectives to consider. While some analysts see opportunities in Lululemon’s growth trajectory, others flag concerns about slowing revenue growth and market performance. Investors monitoring Lululemon Athletica on Smartkarma can leverage these insights from Value Investors Club, Baptista Research, MBI Deep Dives, and Investment Talk to make informed decisions about their investment in the company.
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
Based on the Smartkarma Smart Scores, Lululemon Athletica shows a positive long-term outlook. With a strong growth score of 4 and a resilience score of 4, the company appears well-positioned for future expansion and able to withstand market challenges. This indicates that Lululemon is expected to continue growing steadily while demonstrating a capacity to adapt and persevere in various economic conditions. Additionally, with a momentum score of 3, there is a sense of ongoing market interest and potential for upward movement in the company’s performance.
Lululemon Athletica, known for designing and retailing athletic clothing worldwide, has a balanced profile with its Smart Scores. Although its value and dividend scores are lower at 2 and 1 respectively, the higher growth and resilience scores suggest a promising future for the company. Customers of Lululemon can expect a continued focus on innovative fitness apparel for activities such as yoga, dance, running, and general fitness, reinforcing its position as a global leader 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.
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