Lululemon same-store sales beat estimates

Marco Green
December 7, 2017

After having developed an enviable business model with loyal customers, controversial product problems led to near disaster for the yoga-apparel specialist. Canaccord Genuity set a $43.00 price objective on shares of lululemon athletica and gave the stock a "sell" rating in a report on Tuesday. In analysts note sent to clients and investors on Tuesday, 3 October, Lululemon Athletica Inc (NASDAQ:LULU) shares have had their Buy Rating kept by research analysts at RBC Capital.

The athletic-apparel retailer earned an adjusted $0.56 a share, handily beating the $0.52 that Wall Street analysts surveyed by Bloomberg were anticipating. Let's take a closer look at Lululemon and what its latest results say about the future. (LULU) PT Raised to $75 at BofA/Merrill Lynch ..." with publication date: "November 27, 2017.

Analyst on average were expecting revenue of $866 million and a profit of $1.17 per share, according to Thomson Reuters I/B/E/S.

Excluding the Ivivva costs, adjusted earnings were 56 cents compared with 47 cents in 2016, ahead of analyst mean estimates of 52 cents.

Lululemon's rebound showed how customers have come back to the brand.

Lululemon (NASDAQ:LULU) reports comparable sales increased 8% in Q3 to blast past the consensus estimate for a 5% gain. Also, in a reversal from the past several years, foreign currency impacts actually helped the company's results, adding about two percentage points to sales and a single percentage point to the retailer's comps.

Gross margin was 52.2% of sales during the quarter vs. 51.1% a year ago.

The company said its targeted marketing efforts helped it attract new customers to its stores and website and also generate more sales from loyal shoppers. With only 17 new locations opened, total stores in the Lululemon network were down 33 to 388 by the end of the quarter. Finally, Scotia Capital Inc. lifted its holdings in lululemon athletica by 23.0% in the 2nd quarter.

"As we start the holiday season, I'm energized by our momentum and we are increasing guidance to reflect this performance".

Investors sentiment increased to 1.18 in Q2 2017. Korea Investment CORP raised its position in shares of lululemon athletica by 12.5% in the 3rd quarter.

Earnings per share were $59 million, or 43 cents per share, compared with earnings of $68 million (50 cents) in the same period of past year, due a decision to close the retailer's Ivivva stores in June. On Wednesday, June 21 the stock rating was maintained by Bernstein with "Buy". LLC lifted its holdings in lululemon athletica by 39.7% in the 2nd quarter.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.

Lululemon Athletica Inc. (LULU) closed 14.21% above its 200-day moving average and is 7.23% above another chart threshold, its 50-day moving average. That's right - they think these 10 stocks are even better buys. "Announces Leadership Change" published on November 09, 2017, Nasdaq.com published: "lululemon athletica Reaches Analyst Target Price" on November 13, 2017. The Motley Fool has a disclosure policy.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER