Lululemon

Lululemon Athletica (NASDAQ:LULU) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/09/2024 15.19% Truist Securities $555 → $561 Maintains Buy 12/14/2023 22.37% Stifel $529 → $596 Maintains Buy 12/13/2023 12.93% Telsey Advisory Group $520 → $550 Maintains Outperform 12/08/2023 -16.23% BMO Capital $376 → $408 Maintains Market Perform 12/08/2023 8.21% Truist Securities $500 → $527 Maintains Buy 12/08/2023 -7.6% Wells Fargo $445 → $450 Maintains Equal-Weight 12/08/2023 12.11% TD Cowen $545 → $546 Maintains Outperform 12/08/2023 3.07% Deutsche Bank $500 → $502 Maintains Buy 12/08/2023 -3.5% UBS $429 → $470 Maintains Neutral 12/08/2023 2.66% JP Morgan $489 → $500 Maintains Overweight 12/08/2023 -17.87% Bernstein $366 → $400 Maintains Market Perform 12/08/2023 1.23% Morgan Stanley $437 → $493 Maintains Overweight 12/08/2023 2.66% Keybanc $450 → $500 Maintains Overweight 12/08/2023 8.82% Barclays $480 → $530 Maintains Overweight 12/08/2023 6.77% Telsey Advisory Group $450 → […]

Lululemon Athletica Inc.’s stock (LULU) fell 1.6% in premarket trading on Monday after the company said it could fall a penny short of the FactSet consensus estimate at the low end of its fourth-quarter profit guidance. Lululemon said it now expects to earn between $4.96 and $5 a share in the fourth quarter, compared to the FactSet consensus estimate of $4.97 a share. The apparel maker had previously projected fourth-quarter earnings of $4.85 to $4.93 a share. Lululemon Athletica now expects fourth-quarter revenue of $3.17 billion to $3.19 billion, against the analyst estimate of $3.19 billion. The company’s earlier guidance was for revenue of $3.135 billion to $3.17 billion. “We are pleased with our performance during the holiday season,” the company said. -Steve Gelsi

By Emily Dattilo Shares of Lululemon Athletica were trading lower after the maker of exercise apparel raised its financial forecasts for the fourth quarter but the earnings guidance at the low end was just shy of analysts’ estimates. The stock was down 1.4% to $484.20. Over the last 12 months, shares have rise 64%. For its fiscal fourth quarter, Lululemon said it now expects earnings of between $4.96 and $5 a share, while analysts had penciled in $4.97, according to FactSet. The previous range provided by the company was earnings of $4.85 to $4.93. The company now expects net revenue of between $3.17 billion and $3.19 billion, higher than Lululemon’s prior call for revenue of between $3.135 billion to $3.17 billion. Analysts were expecting $3.19 billion. It also lifted its outlook for gross margins. “We are pleased with our performance during the holiday season, as guests continue to respond well

Lululemon’s upgrade to its 4Q outlook was perhaps a little modest for investors, with the stock edging 0.6% lower. While the athletic apparel brand has a history of beating its 4Q expectations, William Blair analysts Sharon Zackfia and Dylan Carden say the shares retreated due to “revised fourth-quarter outlook only slightly ahead of consensus and a 30%-plus gain in the stock over the last three months.” However, William Blair maintains its outperform rating thanks to its relatively high earnings visibility “courtesy of a higher-income customer demographic and strong brand momentum (strongest global market share gainer in adult active apparel industry over the past four years) and significant opportunity to grow domestic brand awareness.”

Lululemon had many things going for it this Christmas season which should boost revenue in 4Q more than expected, according to Sharon Zackfia of William Blair in a note. The analyst says “store traffic was robust during our pre- and post-Christmas checks, and similar to last year, there was little markdown activity prior to Christmas.” Zackfia also says unseasonably mild weather helped holiday traffic. She now expects revenue growth to be 16% in 4Q, up from 15% previously and ahead of guidance of between 13% and 14%. She estimates 4Q EPS up 14% to $5.02, ahead of consensus of $4.95 and guidance of $4.85 to $4.93.

Lululemon (NASDAQ:LULU) Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/14/2023 17.24% Stifel $529 → $596 Maintains Buy 12/13/2023 8.19% Telsey Advisory Group $520 → $550 Maintains Outperform 12/08/2023 -19.74% BMO Capital $376 → $408 Maintains Market Perform 12/08/2023 3.67% Truist Securities $500 → $527 Maintains Buy 12/08/2023 -11.48% Wells Fargo $445 → $450 Maintains Equal-Weight 12/08/2023 7.41% TD Cowen $545 → $546 Maintains Outperform 12/08/2023 -1.25% Deutsche Bank $500 → $502 Maintains Buy 12/08/2023 -7.54% UBS $429 → $470 Maintains Neutral 12/08/2023 -1.64% JP Morgan $489 → $500 Maintains Overweight 12/08/2023 -21.31% Bernstein $366 → $400 Maintains Market Perform 12/08/2023 -3.02% Morgan Stanley $437 → $493 Maintains Overweight 12/08/2023 -1.64% Keybanc $450 → $500 Maintains Overweight 12/08/2023 4.26% Barclays $480 → $530 Maintains Overweight 12/08/2023 2.29% Telsey Advisory Group $450 → $520 Maintains Outperform 12/08/2023 3.28% Needham $470 → $525 Maintains Buy

Truist Securities analyst Joseph Civello initiated coverage on Lululemon Athletica Inc. (NASDAQ:LULU) with a Buy rating and price target of $500. According to the analyst, Lululemon has some of the strongest brand loyalty in the activewear industry as its direct-to-consumer (DTC) model enables it to invest more in products & foster deeper customer relationships. The analyst writes that even in today’s macro-pressured/promotional environment, LULU’s demand/full-price selling remains robust. Civello sees ample growth opportunities as it rapidly expands in key areas (men’s, digital, & international). From high-tech fabrics that offer the best fit/feel to its fashion-forward designs, customers have shown they’re willing to pay a premium for LULU products, per the analyst. Further, despite leading earnings visibility, LULU’s premium to peers/the market remains at/below historical levels, which creates an attractive entry-point for a best-of-breed name, the analyst adds. The analyst forecasts a 15% revenue CAGR from 2022-2025E. Further, given LULU’s solid cost controls, the

Lululemon Athletica CFO Says “We Are Still Really Early In Our Growth Trajectory In China, Which I Think Helps Us If There Are Any Near-Term Headwinds There”.

Lululemon Athletica CFO Says ‘We Did Take Modest Price Increases On About 10% Of Our Assortment Last Year… We’ll Employ The Same Strategy Going Forward’.