Lululemon Athletica LULU is gearing up to announce its quarterly earnings on Thursday, 2025-03-27. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Lululemon Athletica will report an earnings per share (EPS) of $5.65.
The market awaits Lululemon Athletica's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
The company's EPS beat by $0.15 in the last quarter, leading to a 15.89% increase in the share price on the following day.
Here's a look at Lululemon Athletica's past performance and the resulting price change:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| EPS Estimate | 2.72 | 2.93 | 2.39 | 5 |
| EPS Actual | 2.87 | 3.15 | 2.54 | 5.29 |
| Price Change % | 16.0% | 0.0% | 5.0% | -16.0% |
Performance of Lululemon Athletica Shares
Shares of Lululemon Athletica were trading at $337.35 as of March 25. Over the last 52-week period, shares are down 13.68%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Insights on Lululemon Athletica
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Lululemon Athletica.
Analysts have given Lululemon Athletica a total of 17 ratings, with the consensus rating being Outperform. The average one-year price target is $434.53, indicating a potential 28.81% upside.
Peer Ratings Comparison
In this analysis, we delve into the analyst ratings and average 1-year price targets of Tapestry, Amer Sports and Ralph Lauren, three key industry players, offering insights into their relative performance expectations and market positioning.
- The prevailing sentiment among analysts is an Outperform trajectory for Tapestry, with an average 1-year price target of $88.06, implying a potential 73.9% downside.
- The consensus outlook from analysts is an Buy trajectory for Amer Sports, with an average 1-year price target of $33.88, indicating a potential 89.96% downside.
- Ralph Lauren received a Buy consensus from analysts, with an average 1-year price target of $296.12, implying a potential 12.22% downside.
Insights: Peer Analysis
In the peer analysis summary, key metrics for Tapestry, Amer Sports and Ralph Lauren are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Lululemon Athletica | Outperform | 8.73% | $1.40B | 8.78% |
| Tapestry | Outperform | 5.32% | $1.63B | 14.38% |
| Amer Sports | Buy | 23.20% | $917.50M | 0.34% |
| Ralph Lauren | Buy | 10.83% | $1.47B | 11.94% |
Key Takeaway:
Lululemon Athletica ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.
Delving into Lululemon Athletica's Background
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Lululemon Athletica: Financial Performance Dissected
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Lululemon Athletica displayed positive results in 3 months. As of 31 October, 2024, the company achieved a solid revenue growth rate of approximately 8.73%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Lululemon Athletica's net margin is impressive, surpassing industry averages. With a net margin of 14.68%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Lululemon Athletica's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.78%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Lululemon Athletica's ROA stands out, surpassing industry averages. With an impressive ROA of 5.09%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Lululemon Athletica's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.38.
To track all earnings releases for Lululemon Athletica visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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