lululemon athletica buying shares after fall-analysts
2022.12.09 06:49
lululemon athletica buying shares after fall-analysts
Budrigannews.com – Lululemon Athletica shares (NASDAQ:) are down about 7% in pre-open trading on Friday after the company’s revised full-year guidance still fell short of the average analyst estimate.
LULU reported earnings of $2.00 on $1.9 billion in revenue, exceeding the analyst estimate of $1.96 on $1.81 billion in sales. Revenue increased 28% year-over-year (YoY) while total comparable sales increased 25%, well ahead of the 17.7% increase that was anticipated.
“We continued to deliver strong and balanced results across the board in the third quarter, demonstrating the substantial potential for our brand. According to Calvin McDonald, Chief Executive Officer of lululemon, “Our continued momentum is a testament to our innovative products, deep community relationships, and the hard work and dedication of our talented teams around the world.”
For FY23, LULU raised its profit guidance to $9.87 – $9.97 from $9.75 – $9.9 and for revenue to $7.94B – $7.99B from $7.87B – $7.94B. Analysts were expecting an adjusted EPS of $9.97 on revenue of $7.95B. For Stifel analysts, the after-hours drop in LULU stock is a buying opportunity because the company was facing “elevated” expectations.
More Telecom Italia spoke about interests of investors
“We reiterate our 12 months and view any weakness in shares as an opportunity to buy,” In a note, they stated, “TP of $450.”
The analysts added, “Conservative guidance shouldn’t be a surprise given that two-thirds of the quarter is still ahead and management remembers an omicron-related shortfall before the announcement last year.”
After yesterday’s earnings report, analysts at Wells Fargo also maintained their optimism regarding LULU stock. The price target was increased by $15, to $360 per share, by the analysts.
“This was a solid report in comparison to the rest of the retail industry, with strong revenue growth understoodably offset by GM pressures. LULU is a clearly powerful brand. However, LULU trades differently from the rest of the retail industry, and they stated, “We fear early signs that costs to maintain industry-leading growth are increasing as the brand stretches beyond core loyalists, raising our concerns about future margin pressures.”