Lululemon

Athletic-apparel company Lululemon calls for 1Q revenue between $2.18 billion and $2.2 billion, below Wall Street’s estimates of $2.26 billion. CEO Calvin McDonald says on an investor call there’s been a shift in US consumer behavior lately and that the company is navigating a slower start to the year. CFO Meghan Frank adds that the slowdown in the US is broad-based but notes Lululemon has identified opportunities in product, specifically in color and women’s sizing. Shares slide 15% to $408.71 in early trading.

Lululemon’s softer-than-expected outlook for 1Q and FY24 isn’t a concern for some. Lorraine Hutchinson and Christopher Nardone, analysts at BofA Securities, say in a research note that the athletic-apparel company’s guidance could prove to be conservative even when factoring quarter-to-date weakness if new deliveries continue to perform. They expect another year of innovation from Lululemon’s pipeline of fabric, styles and categories. Hutchinson and Nardone also say international markets represent a key opportunity. Lululemon today is currently the worst performer in the S&P 500 and Nasdaq 100.

Jefferies analyst Randal Konik reiterates Lululemon Athletica (NASDAQ:LULU) with a Underperform and maintains $300 price target.

lululemon athletica inc. Announces Fourth Quarter and Full Year Fiscal 2023 Results Fourth quarter revenue increased 16% to $3.2 billion. Diluted EPS of $5.29 Full year revenue increased 19% to $9.6 billion. Diluted EPS of $12.20, adjusted EPS of $12.77 VANCOUVER, British Columbia–(BUSINESS WIRE)–March 21, 2024– lululemon athletica inc. (NASDAQ:LULU) today announced financial results for the fourth quarter and fiscal year ended January 28, 2024. Calvin McDonald, Chief Executive Officer, stated: “We are pleased with the strong finish to our 2023 fiscal year and continue to be ahead of our Power of Three ×2 strategy. During the fourth quarter, we saw continued momentum across our channels, geographies, and merchandise categories, driven by our teams around the world. As we step into 2024, we are focused on the significant opportunities ahead for lululemon as we navigate the dynamic retail environment and deliver for guests through innovative new products and brand activations.”

Lululemon Athletica Guides For Q1 EPS of $2.35-$2.40 on Revenue of $2.175-$2.20 Billion, Vs CIQ Analyst Consensus of $2.55/Share on Revenue of $2.26 Billion.

Truist Securities analyst Scot Ciccarelli maintains Lululemon Athletica (NASDAQ:LULU) with a Buy and maintains $561 price target.

Lululemon Athletica (LULU) faces a mixed outlook among investors amid an expected “soft” Q1 US outlook countered by “robust international momentum,” UBS Securities said Monday in a report. “China’s trends looks robust, and soft US checks over the last three to four quarters have not resulted in weak earnings or guidance,” UBS said. “We see a very slightly negative upside/downside skew.” UBS said its data shows China momentum continuing, while industry web traffic indicates a deceleration for Lululemon. “Whatever plays out, we, we sense a large group of investors will be surprised,” UBS said. The investment firm kept its neutral rating on Lululemon and maintained the price target at $525. Results for Q4 and the full year are expected Thursday.

Lululemon Athletica (LULU) has a slight negative bias heading into the March 21 fourth-quarter print with solid holiday trends previously discussed by management, but soft first-quarter sales could lead to volatility after the event, UBS said. The brokerage is guiding for revenue growth of about 16% to $3.22 billion in the fourth quarter, slightly above the consensus view of $3.19 billion. Its adjusted earnings per share target of $5.02 is also above the Street’s view of $5, Monday’s emailed note showed. “We anticipate that the international region will be the primary driver of sales growth as it benefits from ongoing unit expansion and recovery of the Greater China region,” UBS analysts including Jay Sole and Mauricio Serna wrote. Lululemon demand likely remained robust in the quarter that included the key holiday shopping period, they said, with management commentary previously suggesting such a scenario. UBS is modeling sales growth of 10%

Morgan Stanley Boosts Price Target on Lululemon Athletica to $539 From $493, Keeps Overweight Rating.

Lululemon Athletica (NASDAQ:LULU) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/12/2024 17.6% Keybanc $500 → $570 Maintains Overweight 01/10/2024 7.29% Raymond James $495 → $520 Maintains Outperform 01/09/2024 15.75% Truist Securities $555 → $561 Maintains Buy 12/14/2023 22.97% Stifel $529 → $596 Maintains Buy 12/13/2023 13.48% Telsey Advisory Group $520 → $550 Maintains Outperform 12/08/2023 -15.82% BMO Capital $376 → $408 Maintains Market Perform 12/08/2023 8.73% Truist Securities $500 → $527 Maintains Buy 12/08/2023 -7.16% Wells Fargo $445 → $450 Maintains Equal-Weight 12/08/2023 12.65% TD Cowen $545 → $546 Maintains Outperform 12/08/2023 3.57% Deutsche Bank $500 → $502 Maintains Buy 12/08/2023 -3.03% UBS $429 → $470 Maintains Neutral 12/08/2023 3.16% JP Morgan $489 → $500 Maintains Overweight 12/08/2023 -17.47% Bernstein $366 → $400 Maintains Market Perform 12/08/2023 1.72% Morgan Stanley $437 → $493 Maintains Overweight 12/08/2023 3.16% Keybanc $450 → $500

Lululemon Athletica Inc (NASDAQ:LULU) has been in focus after grabbing the attention of U.S. shoppers during the holiday season. Although the company’s growth could slow, it remained “one of the most attractive growth stories among global brands,” given the potential to scale the International and Men’s segments with margin expansion, according to Raymond James. The Lululemon Athletica Analyst: Rick Patel maintained an Outperform rating for Lululemon Athletica while raising the price target from $495 to $520. The Lululemon Athletica Group Thesis: The meeting with the company revealed revenue growth guidance for the fourth quarter was raised from +13-15% to +14-15% to reflect better-than-expected demand, Patel said in the note. Lululemon Athletica expects its gross margins to expand by 120 to 130 basis points, versus its earlier projection of 90 to 120 basis points, due to better-than-expected sales growth, modestly higher-than-expected air freight benefit and lower-than-planned markdowns, the analyst stated. The company’s competitive promotions

Lululemon is benefiting from strong demand levels for its categories, even though outerwear was “good but not great,” Raymond James’ Rick Patel says after meeting with Lululemon’s VP of investor relations, Howard Tubin, at the annual ICR conference in Orlando, Florida. Lululemon raised its 4Q EPS and revenue guidance earlier this week. “While we expect growth to slow versus recent years, we still consider Lululemon one of the most attractive growth stories among global brands with an opportunity to scale International and men’s with high margins that can increase further,” Patel adds. Raymond James raises its 4Q revenue estimates to 15% growth, up from 14% previously, and upgrades its FY24 EPS estimates to $13.98 from $13.90. The firm also raises its target price to $520 from $495.