Consumer Discretionary

Lululemon Athletica Inc (NASDAQ:LULU) reported first-quarter financial results Wednesday after the bell. Here’s a look at the key metrics from the quarter. Q1 Earnings: Lululemon reported first-quarter revenue of $2.21 billion, beating the consensus estimate of $2.2 billion, according to Benzinga Pro. The athleisure company reported quarterly earnings of $2.54 per share, beating analyst estimates of $2.39 per share. Total revenue was up 10% on a year-over-year basis and total comparable sales increased 6% year-over-year. Americas net revenue increased 3% year-over-year, while international revenue was up 35% year-over-year. Lululemon’s total store count was 711 at quarter’s end. Inventories were down 15% year-over-year. The company ended the quarter with $1.9 billion in cash and equivalents. Lululemon also said its board authorized a $1 billion increase to its stock repurchase program, bringing the total remaining amount under the buyback up to $1.7 billion. “In the first quarter, we saw strong momentum in […]

By Sabela Ojea Lululemon Athletica said revenue rose in the latest quarter boosted by its presence in the Chinese market amid a slowdown in growth in the Americas. The yoga pants maker on Wednesday posted a profit of $321.4 million, or $2.54 a share, compared with $290.4 million, or $2.28 a share, for the same period a year earlier. Analysts surveyed by FactSet had forecast earnings per share of $2.41. Revenue rose to $2.21 billion from $2 billion, slightly beating the $2.2 billion expected by Wall Street, according to FactSet. In the Americas region, Lululemon saw revenue growth of 3%, down from a 9% increase in the fourth quarter. “Guests responded well to our product innovations across categories, and we are pleased by the progress we are making to optimize our U.S. product assortment,” Chief Executive Calvin McDonald said. Lululemon’s international revenue jumped 35%, mainly boosted by its performance in

Lululemon Athletica (LULU) late Wednesday reported stronger-than-expected fiscal first-quarter results while the athletic apparel and footwear company lifted its full-year earnings outlook. Earnings advanced to $2.54 a share during the quarter through April 28 from $2.28 the year before, surpassing the Capital IQ-polled GAAP consensus of $2.42. Revenue increased 10% to $2.21 billion, just above analysts’ $2.2 billion estimate. Lululemon’s Nasdaq-listed stock was rallying 13% in after-hours trade. Comparable sales increased 6%, driven by a 25% jump in international operations. The consensus was for a 6.5% headline rise. Lululemon expects full-year EPS of $14.27 to $14.47, compared with $14 to $14.20 previously projected. The company continues to expect revenue of $10.7 billion to $10.8 billion. Analysts are forecasting GAAP EPS of $14.18 and sales of $10.76 billion. For the fiscal second quarter, the company expects EPS of $2.92 to $2.97 on revenue between $2.4 billion to $2.42 billion. The Street

Lululemon Athletica Exec – Expect to Be in a More Optimal Inventory Position in Second Half of 2024

Lululemon Athletica Exec – Expect Transaction for Mexico Ops to Have an Immaterial Impact on Financial Results for FY2024

Lululemon’s performance in the U.S. dragged down the yoga maker’s results in the latest quarter, leading to what CEO Calvin McDonald calls a slower start to the year. Several internal factors hit Lululemon’s results, including a missed opportunity in women’s and bags, which the company’s actively addressing, McDonald says. Operating in a choppy U.S. consumer environment didn’t help, McDonald says. When looking at women’s, the company should have stopped focusing as much in leggings. These comments come as competitors Alo Yoga and Vuori focus on wide-leg bottoms that come with pockets. Shares rise 11% to $341.52 after hours.

Lululemon Athletica (LULU) may miss fiscal first-quarter earnings expectations on Wednesday, though trends have stabilized and the stock has already absorbed much of the near-term impact, according to Oppenheimer. The brokerage on Tuesday reiterated its earnings per share target of $2.35 that suggests a 3% year-over-year gain from $2.28 the year earlier. Wall Street is expecting EPS of $2.40, while Lululemon’s guidance ranges from $2.35 to $2.40, the report showed. Oppenheimer is modeling for net revenue growth of 9.8% for the April quarter, which is below the consensus view’s 9.9% growth rate but toward the upper-end of management’s 9% to 10% guidance. “While we do not expect an ‘all-clear’-type report from (Lululemon), we do anticipate signals suggesting that trends at the brand have largely stabilized, lately,” a group of Oppenheimer analysts including Brian Nagel said in a report. Lululemon’s “subdued initial” fiscal 2024 top-line growth guidance of 11% to 12%,

Oppenheimer analyst Brian Nagel reiterated an Outperform rating on the shares of Lululemon Athletica Inc (NASDAQ:LULU) with a price target of $445.00. The analyst’s EPS forecast of $2.35 remains unchanged and suggests a gain of 3% from $2.28 the prior year, compared with a Street figure of $2.40. For FY24, the analyst continues to expect EPS of $14.01 versus a current consensus forecast of $14.13 and guidance for $14.00-14.20. Since the day LULU reported fourth-quarter results, shares are down more than 35% and underperforming meaningfully a decline of just 1% in the S&P 500, noted the analyst. At current levels, LULU trades at a forward four quarter PE multiple of just 21x, marking the lowest level since May 2017, said the analyst. The analyst looks upon recent merchandising missteps at LULU as not necessarily unprecedented and likely fixable, nearer-term. The analyst also highlighted the latest expanded assortments of fresh colors