- Lululemon raised its fourth-quarter EPS forecast to a range of $5.81 to $5.85, up from the previous expectation of $5.56 to $5.64.
- The revised EPS forecast exceeds market estimates of $5.67.
- Net revenue is projected to be between $3.56 billion and $3.58 billion, improving on the earlier forecast of $3.48 billion to $3.51 billion.
- This net revenue projection is higher than the market estimate of $3.52 billion.
- The company expects its gross margin to rise by about 30 basis points compared to the fourth quarter of fiscal 2023, a positive shift from a previous decrease of 20 to 30 basis points.
- Lululemon’s management will participate in meetings with analysts and investors at the ICR Conference from January 13 to 15.
- Current market analysts’ recommendations include 23 buys, 12 holds, and 5 sells for Lululemon’s stock.
Lululemon Athletica on Smartkarma
Analyst coverage on Lululemon Athletica on Smartkarma reflects a mix of bullish and bearish sentiments. Baptista Research‘s report highlighted the company’s international growth as a driver for top-line growth, particularly in China where revenue saw a significant increase. On the other hand, MBI Deep Dives pointed out the market skepticism faced by Lululemon despite a stock surge, with management’s upbeat tone contrasting with missed revenue guides.
Baptista Research‘s analysis delves into Lululemon’s athleisure market position and growth strategy, noting a moderate revenue increase in the second quarter of 2024 with a strong performance in international markets. Conversely, MBI Deep Dives raised a bearish sentiment following a revenue miss and reduced full-year guidance, highlighting concerns around the company’s US business. These varied perspectives provide investors with a comprehensive view of factors influencing Lululemon’s stock performance.
A look at Lululemon Athletica Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
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
Investors looking at the long-term outlook for Lululemon Athletica can take note of its impressive Smartkarma Smart Scores. With a strong Growth score of 4 and Momentum score of 5, the company showcases promising potential for expansion and market performance. Additionally, Lululemon’s Resilience score of 3 indicates a solid ability to weather challenges that may arise in the dynamic retail landscape. While the Value score is more moderate at 2 and the Dividend score is low at 1, the overall outlook for Lululemon Athletica appears positive for those seeking growth and momentum in their investment portfolio.
lululemon athletica Inc. is known for designing and retailing athletic clothing, specializing in fitness pants, shorts, tops, and jackets tailored for activities like yoga, dance, running, and general fitness. With a global reach, the company serves customers around the world, emphasizing a blend of style and functionality in its product offerings.
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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