Latest news with #LululemonAthleticaInc
Yahoo
2 days ago
- Business
- Yahoo
Lululemon Stretched by Tariffs, Macro
Lululemon beat Wall Street's top- and bottom-line expectations, but it cut guidance over macroeconomic concerns. The company's international business posted solid growth, but the Americas region was weak. Lululemon is taking steps to mitigate the impact of tariffs, but until U.S. consumer confidence grows, there is little the company can do to bounce back. 10 stocks we like better than Lululemon Athletica Inc. › Here's our initial take on Lululemon Athletica's (NASDAQ: LULU) financial report. Metric Q1 2024 Q1 2025 Change vs. Expectations Revenue $2.2 billion $2.4 billion 7.3% Beat Earnings per share $2.54 $2.60 2% Beat Comparable sales 6% 1% -500 bps n/a Gross margin 57.7% 58.3% 60 bps n/a Athletic apparel specialist Lululemon beat Wall Street top- and bottom-line expectations for the quarter, delivering 7.3% revenue growth and a slight uptick in earnings per share. But CEO Calvin McDonald warned of a "dynamic macroenvironment" that the company expects to weigh on results in the quarters to come. First, the good news. Revenue growth came in toward the top of Lululemon's guidance, fueled by strong 6% international comparable sales. Overall international net revenue increased by 19%, or 20% when adjusted for currency fluctuations. But Americas comp sales were down 2% and overall revenue was up by just 3%, pressured by an uncertain American consumer. Lululemon does not expect those pressures to ease in the months to come. The company cut its full-year guidance, saying it now expects to earn between $14.58 and $14.78 per share. That's down from its previous $14.95 to $15.15 per share guidance, and below Wall Street's $14.89 consensus estimate. The somber tone and cut guidance appeared to have caught investors off guard. Lululemon shares, already down 11% for the year heading into earnings, were down 20% in after-hours trading ahead of the New York open Friday. McDonald pledged to "leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us." Lululemon has the wherewithal to weather this storm, but there is only so much the company can do in this environment. Chief financial officer Meghan Frank, on the post-earnings call, said the company is looking to take "strategic price increases" to mitigate the impact of tariffs, as well as evaluating sourcing options. But any efficiency gains made will take time to play out. The good news for investors is Lululemon market share held up well in a rough environment, which implies there is nothing wrong with the brand. But until there is more certainty on the macro front, Lululemon stock could be stuck in neutral. Full earnings report Investor relations page Additional coverage Before you buy stock in Lululemon Athletica Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lululemon Athletica Inc. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy. Lululemon Stretched by Tariffs, Macro was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why Lululemon Athletica Stock Crashed Today
Lululemon Athletica stock beat on earnings last night -- barely. Guidance is the bigger worry, with Lululemon forecasting much lower Q2 earnings than Wall Street expected. Trump's tariffs turmoil appears to be to blame. 10 stocks we like better than Lululemon Athletica Inc. › Lululemon Athletica (NASDAQ: LULU) stock got torn up on Friday, tumbling 20.2% through 11:55 a.m. ET despite beating earnings (barely) last night. Heading into the company's Q1 2025, analysts expected Lululemon to post $2.59 per share in profit on $2.37 billion in quarterly sales. Lululemon nailed the revenue target, and beat by the proverbial penny, with $2.60 per share earned. Sales grew 7% year over year, but same-store sales were up only 1%. Gross profit margins grew, but operating margins sank -- down 110 basis points to 18.5%. Still, on the bottom line, Lulu managed to grow its earnings by about 2%, to the aforementioned $2.60 per share. Earnings growth did lag sales growth significantly, however, because of the slimmer profit margin. Yet even so, CFO Meghan Frank emphasized the fact that sales did grow faster, and said she was "pleased with the start to our second quarter" as well. But should she be? Turning to guidance, Lululemon says Q2 sales will grow 7% or 8% to as high as perhaps $2.56 billion, with earnings between $2.85 per share and $2.90. Problem is, up on Wall Street, they wanted to hear Lulu promise $3.32 per share -- and that's clearly not going to happen. Worse, full-year guidance sees sales growth slowing to as little as 5% to 7% ($11.15 billion to $11.3 billion), and earnings are supposed to range from $14.58 to $14.78 per share. Analysts blame President Trump's tariffs policy for the weakening sales outlook. But whoever's to blame, the results aren't encouraging. Valued at about 18 times current-year forecast earnings, Lululemon stock costs too much for mid-single-digit growth. For the time being, I'm afraid it's probably a "sell." Before you buy stock in Lululemon Athletica Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lululemon Athletica Inc. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy. Why Lululemon Athletica Stock Crashed Today was originally published by The Motley Fool Sign in to access your portfolio
Fashion United
2 days ago
- Business
- Fashion United
Following profit decline in first quarter: Lululemon lowers earnings forecast
Canadian sportswear retailer Lululemon Athletica Inc. recorded solid revenue growth in the first quarter of the 2025/26 financial year, but saw a slight decline in profits. Overall, the results, which the Vancouver-based yoga apparel specialist published on Thursday evening, came as little surprise: they were largely in line with analysts' expectations. However, the company still lowered its profit forecast for the current year. Strong growth in China boosts revenue development In the first quarter, which ended on May 4, Lululemon generated revenue of 2.37 billion dollars. This represented an increase of seven percent compared to the same period last year. Adjusted for exchange rate changes, revenue grew by eight percent. The increase was mainly due to the opening of new stores. On a like-for-like (LFL) basis, the company's revenue increased by only one percent. In the Americas, Lululemon achieved revenue growth of three percent (+four percent in constant currency). The international business developed significantly more dynamically, with revenue increasing by 19 percent (+20 percent in constant currency), not least thanks to above-average growth in mainland China (+21 percent). Net profit shrinks by two percent The company increased its operating margin from 57.7 to 58.3 percent, but had to post significantly higher distribution costs and one-off charges. As a result, operating profit increased by only 1.4 percent to 438.6 million dollars. Net profit fell by 2.1 percent to 314.6 million dollars. Due to share buybacks, however, diluted earnings per share increased from 2.54 dollars to 2.60 dollars, slightly exceeding market expectations. Management lowers profit forecast In view of the available figures and current market conditions, management lowered its earnings forecast for the full year. It now expects diluted earnings per share in the range of 14.58 dollars to 14.78 dollars for FY2025/26. Previously, 14.95 dollars to 15.15 dollars had been expected. The revenue target, on the other hand, remained unchanged. It therefore continues to be 11.15 billion dollars to 11.30 billion dollars, which would represent an increase of five to seven percent compared to the previous year. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Yahoo
6 days ago
- Business
- Yahoo
Best of June: Retail Stock Could Topple Resistance
Lululemon Athletica Inc (NASDAQ:LULU) stock was last seen trading at $319.20, brushing off thanks to a price-target hike from TD Cowen to $373 from $370. The shares are testing their 320-day moving average before the retailer's first-quarter report, due out after the close on Thursday, June 5. This pressure could come crashing down soon, however, given LULU summer seasonality. is among the to own this month, per Schaeffer's Senior Quantitative Analyst Rocky White. The shares averaged a monthly pop of 9.4% and ended the month higher 80% over the past decade. LULU is also the only retailer on the list. A comparable move from its current perch would place shares just shy of $350, clearing that aforementioned ceiling. The security would also hit its highest trading level since March and extend its 23% nine-month lead. A round of bull notes could keep tailwinds blowing, as 14 of the 31 firms in coverage call LULU a "hold" or worse. There's also short squeeze potential. Short interest already fell 8% in the last two reporting periods, yet the 5.94 million shares sold short still make up 5.4% of the stock's available float. LULU has a positive history of post-earnings reactions, finishing six of its last eight next-day sessions higher, including a 16% gain in December. The security averaged a 9.2% move over the last two years, regardless of direction, and this time around the options pits are pricing in a bigger 13.8% move for Friday's trading. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Morgan Stanley Maintains Buy Rating on Lululemon Athletica (LULU)
In a report released on May 19, Matthew Boss from J.P. Morgan maintained a Buy rating on Lululemon Athletica Inc (NASDAQ:LULU) and set a price target of $389.00. The analyst is bullish on Lululemon Athletica Inc. (NASDAQ:LULU) because of its solid operations, corroborated by its strong fiscal Q4 2024 results. A store employee in an athletic apparel store restocking merchandise. Net revenue for the quarter underwent a 13% growth to $3.6 billion, or 14% on a constant dollar basis. Net revenue for the Americas rose 7% (or 8% on a constant dollar basis), while international net revenue experienced a notable 38% surge (or 40% on a constant dollar basis). Lululemon Athletica Inc. (NASDAQ:LULU) also reported a 15% growth in gross profit to $2.2 billion in fiscal Q4 2024, while gross margin rose 100 basis points to 60.4%. The company plans to continue this growth momentum and expects net revenue for 2025 to fall between $11.150 billion and $11.300 billion, representing a growth of 5% to 7%. While we acknowledge the potential of LULU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LULU and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
