Latest news with #lululemonathleticainc
Yahoo
a day ago
- Business
- Yahoo
Baird Reduces PT on lululemon athletica (LULU) Stock
lululemon athletica inc. (NASDAQ:LULU) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On August 11, Baird reduced the price objective on the company's stock to $260 from $340, keeping an 'Outperform' rating, as reported by The Fly. The firm updated the model after the recent selloff. In Q1 2025, lululemon athletica inc. (NASDAQ:LULU) saw growth throughout channels, categories, and markets, which include the US, reflecting the continued strength and agility of its business model. A store employee in an athletic apparel store restocking merchandise. lululemon athletica inc. (NASDAQ:LULU) added 3 net new company-operated stores during Q1 2025, ending with 770 stores. The company's gross margin came in at 58.3% in Q1 2025 as compared to 57.7% in Q1 2024. The rise was mainly because of a net increase in product margin of 110 bps, comprising a net increase of 130 bps due to reduced product costs and increased average unit retail, and lower damages, partially offset by elevated freight costs, and an unfavorable impact of foreign currency exchange rates of 20 bps. Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said: 'Other bottom contributors in Q1 included Lululemon athletica inc. (NASDAQ:LULU), General Motors and Capital One. Shares of athletic apparel manufacturer lululemon were pressured amid ongoing concerns about potential brand saturation in the Americas, its largest market. However, we believe the company is operating well and is positioned to improve US sales performance while continuing to grow international sales — factors that make the current valuation compelling, in our view.' While we acknowledge the potential of LULU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
27-06-2025
- Business
- Yahoo
lululemon athletica inc. (LULU) Isn't Doing Great Right Now, Says Jim Cramer
lululemon athletica inc. (NASDAQ:LULU) is one of the . lululemon athletica inc. (NASDAQ:LULU) is a Canadian fitness apparel company whose shares have been caught in the midst of a broader weakness in the retail market. The shares are down by 37% year-to-date on the back of a particularly vicious 19.8% dip in June. lululemon athletica inc. (NASDAQ:LULU)'s shares sank after management revealed that it might have to increase prices and absorb the impacts of tariffs on its income statement. In his earlier remarks about lululemon athletica inc. (NASDAQ:LULU), Cramer has wondered whether he misjudged the firm's competition. This time around he mentioned the stock as an afterthought in the sectors that aren't doing well right now: 'Remember, it's certain, I'm saying, housing, that's not great. Housing, auto, and Lulu.' A store employee in an athletic apparel store restocking merchandise. Cramer discussed lululemon athletica inc. (NASDAQ:LULU) in detail after the disastrous earnings report. Here is what he said: 'I thought that LULU would do better. I thought that LULU would do better. I was quite surprised. I just, it was a bad conference call. It was a bad quarter. I am aghast to think that this could be… such a horrible situation. They had tariff problems. They had the wrong fashion. Everything went wrong for Calvin McDonald, and what can I say? I just don't think he's capable of being as bad as that stock was, 17 times earnings. It was a bad quarter, though. And you know… I've thought a lot about this, done a lot of soul searching, I am shocked at how they missed the quarter, and I wouldn't be surprised if there weren't some shakeups if that happened again.' 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-06-2025
- Business
- Yahoo
lululemon athletica inc. (LULU): I 'Misjudged' The Firm, Says Jim Cramer
lululemon athletica inc. (NASDAQ:LULU) is one of the . lululemon athletica inc. (NASDAQ:LULU) is a Canadian retailer that sells athletic apparel and associated products. The firm's shares are down by 36% year-to-date primarily on the back of a massive 20% drop in June. lululemon athletica inc. (NASDAQ:LULU)'s shares sank after the firm warned about the impact of tariffs and added that it would have to raise prices. In his previous remarks about the company, Cramer discussed the quarter in detail and lamented that he had believed lululemon athletica inc. (NASDAQ:LULU) would be in a better place. This time around, he maintained his opinion and added that his evaluations of the firm's competition were also incorrect: 'I think I misjudged LULU, I misjudged the competition.' A store employee in an athletic apparel store restocking merchandise. Cramer's previous comments about lululemon athletica inc. (NASDAQ:LULU), made ahead of June's quarter report discussed the firm in detail: '[The stock] sold off some more after Liberation Day because Lulu has a huge manufacturing presence in Vietnam, which was set to be hit with a 46% tariff…. Once those reciprocal tariffs got delayed, Lulu was able to mount a comeback. But can this rebound continue? I'm cautiously optimistic. I'm going to tell you why. First, I'm still hopeful that the tariffs on Vietnam won't end up being anywhere near that 46% level that was announced on Liberation Day… So the bottom line: lululemon is a beaten-down retail that I think can continue making a comeback. We'll see what happens next week, but for the time being, I am inclined to take a chance here. Maybe do it with call options, deep in the money. Why not? The expectations for lululemon are so low that the risk-reward seems pretty skewed to the upside.' 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
16-06-2025
- Business
- Yahoo
Jim Cramer on lululemon: 'I am Shocked at How They Missed the Quarter'
lululemon athletica inc. (NASDAQ:LULU) is one of the . Noting that they are 'down', a caller mentioned that they took Cramer's advice and bought lululemon athletica inc. (NASDAQ:LULU) shares. In response, Cramer said: 'I thought that LULU would do better. I thought that LULU would do better. I was quite surprised. I just, it was a bad conference call. It was a bad quarter. I am aghast to think that this could be… such a horrible situation. They had tariff problems. They had the wrong fashion. Everything went wrong for Calvin McDonald, and what can I say? I just don't think he's capable of being as bad as that stock was, 17 times earnings. It was a bad quarter, though. And you know… I've thought a lot about this, done a lot of soul searching, I am shocked at how they missed the quarter, and I wouldn't be surprised if there weren't some shakeups if that happened again.' A store employee in an athletic apparel store restocking merchandise. lululemon (NASDAQ:LULU) designs and sells high-performance athletic apparel, footwear, and accessories. The company caters to fitness and lifestyle activities through various retail and online channels. While we acknowledge the potential of LULU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. 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
Yahoo
06-06-2025
- Business
- Yahoo
lululemon Q1 Earnings & Revenues Beat, Stock Dips on Cost Outlook
lululemon athletica inc. LULU reported first-quarter fiscal 2025 results, wherein revenues and earnings beat the Zacks Consensus Estimate and improved year over year. The company's top-line growth was fueled by broad-based gains across channels, categories and key markets, particularly the United States, underscoring the continued strength and adaptability of its business model. Positive response to its product innovations, newness and brand activations aided its fiscal first-quarter earnings per share (EPS) of $2.60 increased 2.4% compared with $2.54 reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.59. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Shares of lululemon have dropped 22.4% in the after-hours trading session yesterday despite the better-than-expected first-quarter fiscal 2025 performance. The decline in share price is mainly due to adverse currency rates and the looming effects of the rising tariffs on imports, which are expected to result in elevated costs, hurting the bottom line and margins. This Zacks Rank #3 (Hold) company has seen its shares decline 3.9% in the past three months compared with the Textile - Apparel industry's fall of 2.4%. Image Source: Zacks Investment Research The Vancouver, Canada-based company's quarterly revenues advanced 7% year over year to $2.37 billion and outpaced the Zacks Consensus Estimate of $2.36 billion. On a constant-dollar basis, net revenues improved 8% year over year in the fiscal first quarter. Net revenues grew 3% in the Americas on a reported basis (4% on a constant-dollar basis) and 19% internationally (up 20% on a constant-dollar basis). Management highlighted that the fiscal first quarter revenue growth was at the upper end of its 6-7% year-over-year guidance comparable sales (comps) rose 1% year over year. Comps in the Americas declined 2% on a reported basis and 1% in constant dollars. Internationally, comps increased 6% and rose 7% on a constant-dollar a country basis, revenues increased 4% year over year (9% in constant currency) in Canada and 2% in the United States, 21% in Mainland China (22% in constant currency) and 16% in the Rest of the World (17% in constant currency). Comps improved 8% in Mainland China and 7% in the Rest of the World in the fiscal first quarter. lululemon athletica inc. price-consensus-eps-surprise-chart | lululemon athletica inc. Quote In the store channel, the company's total sales increased 8% on a constant-dollar basis. Digital revenues improved 6% year over year, contributing $961 million, or 40%, to the total gross profit improved 8% year over year to $1.4 billion. Also, the gross margin expanded 60 basis points (bps) to 58.3%, primarily driven by a 130-bps improvement in the product margin, supported by lower product costs, reduced damages and better markdowns. This was partially offset by increased airfreight expenses, 20-bps negative impacts of foreign exchange and 50-bps of net deleverage on fixed also noted that gross margin growth in the quarter was ahead of its guidance, mainly driven by lower product cost leverage on fixed costs and slightly better markdowns. We expected the gross margin to contract 50 bps year over year to 57.2% for the fiscal first expenses of $942.9 million increased 11.9% from the year-ago quarter. SG&A expenses, as a percentage of net revenues, of 39.8% rose 170 bps from 38.1% in the prior-year quarter. The increase in SG&A expense rate was above the anticipated deleverage of 120 bps outlined by the company due to the negative impacts of FX revaluation model predicted SG&A expenses to rise 7.1% year over year for the fiscal first quarter, with a 20-bps increase in the SG&A expense rate to 38.3%.The operating income rose 1% year over year to $438.6 million in the fiscal first quarter. The operating margin of 18.5% expanded 110 bps year over year. Our model predicted a 2.4% year-over-year increase in adjusted operating income. We estimated the operating margin to decline 80 bps year over year to 18.8%. In first-quarter fiscal 2025, LULU opened three net new stores, including five store openings and two closures. Additionally, the company completed four optimizations. As of May 4, 2025, it operated 770 the second quarter of fiscal 2025, the company expects to open 14 net new company-operated stores and complete nine store optimizations. For fiscal 2025, lululemon anticipates 40-45 net new company-operated stores. It also expects to complete 40 co-located optimizations. LULU expects overall square footage growth in the low-double-digits for fiscal 2025. Store openings in fiscal 2025 will include 10-15 in the Americas. The rest of the store openings in fiscal 2025 are expected to occur in the international markets, primarily in China. lululemon exited first-quarter fiscal 2025 with cash and cash equivalents of $1.3 billion. The company had $393.4 million of capacity under its committed revolving credit facility and stockholders' equity of $4.3 billion. Its inventories rose 17% year over year to $1.7 billion, with inventory units improving 16%. The capital expenditure was $152 million in the fiscal first the fiscal first quarter, lululemon repurchased 1.4 million shares for $430.4 million at an average price of $316. As of May 4, 2025, LULU had $1.1 billion remaining under its current share repurchase authorization. LULU is excited about building on its momentum in fiscal 2025 while staying adaptable in the face of macroeconomic uncertainties. With significant opportunities in the pipeline, the company remains confident in its ability to drive sustainable growth and deliver long-term value for all a result, it reiterated its revenue guidance for fiscal 2025. However, the company anticipates higher costs and ongoing uncertainty due to the impacts of increased tariffs on imports from China and Mexico, which are likely to result in higher costs in the quarters fiscal 2025, LULU anticipates net revenues of $11.15-$11.3 billion, indicating 5-7% year-over-year growth. Excluding the 53rd week in 2024, revenues are expected to rise 7-8%. The company's guidance assumes positive revenue growth across all regions, including a low to mid-single-digit increase in North America, a 25-30% rise in Mainland China and a nearly 20% improvement in the Rest of the World. Growth across all markets is expected to be driven by the company's unique product and innovative solutions for guests in the athletic and lifestyle product expects a 110-bps year-over-year decline in the gross margin compared with the previous guidance of a 60-bps decline. The variance from the prior guidance is mainly due to an additional 50 bps of deleverage, led by increased tariffs, partly offset by its enterprise-wide efforts to mitigate these costs and slightly higher markdowns. The higher tariffs are expected to be driven by 30% incremental tariffs on China and an incremental 10% on the remaining countries from where LULU's products are sourced. The company has identified several mitigation strategies to offset these tariff cost headwinds, which are expected to be the most effective in the second half of fiscal SG&A expense rate is expected to rise 50 bps year over year for fiscal 2025, almost in line with the prior guidance, driven by ongoing investments into its Power of Three x2 plan and currency headwinds. Throughout fiscal 2025, the company plans to invest in marketing and brand building to enhance awareness and attract guests, support international growth and market expansion, and strengthen its technology and data analytics expects the fiscal 2025 operating margin to contract 160 bps year over year. The company projects an EPS of $14.95-$14.78, suggesting an increase from the $14.64 reported in fiscal 2024. It anticipates an effective tax rate of 30% for fiscal 2025. lululemon expects a capital expenditure of $740-$760 million for fiscal the second quarter of fiscal 2025, management anticipates net revenues of $2.535-$2.56 billion, indicating 7-8% year-over-year growth. The company expects the gross margin to decline 20 bps year over year, driven by elevated occupancy and depreciation, higher tariff rates, slightly higher markdowns and adverse currency as a percentage of sales, is expected to deleverage 170-190 bps year over year, driven by higher foundational investments and associated depreciation, as well as strategic initiatives to enhance brand awareness and support growth. The operating margin for the fiscal second quarter is expected to decline 380 bps year over year. Notably, it reported operating margin growth of 110 bps in the prior-year quarter. The variance is mainly due to the impacts of external factors like tariffs and currency for the fiscal second quarter is expected to be $2.85-$2.90, whereas it reported EPS of $3.15 in the prior-year quarter. LULU estimates an effective tax rate of 30% for the fiscal second quarter. The company anticipates dollar inventory to increase in the low 20s in the fiscal second quarter and inventory per unit to increase in the low-double-digits, driven by higher tariffs and adverse currency rates. The company expects inventory growth for the rest of the fiscal year to follow a similar pattern. We have highlighted three better-ranked stocks from the same industry, namely Birkenstock Holding PLC BIRK, Urban Outfitters URBN and adidas AG manufactures and sells footwear products. BIRK flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for Birkenstock's current fiscal-year sales and earnings indicates growth of 21.6% and 36.7%, respectively, from the year-ago period's reported figure. BIRK has a trailing four-quarter earnings surprise of 7.8%, on Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor, and gift products. URBN sports a Zacks Rank #1 at Zacks Consensus Estimate for Urban Outfitters' current fiscal-year sales and earnings indicates growth of 8% and 20.9%, respectively, from the year-ago period's reported figures. URBN has a trailing four-quarter earnings surprise of 29%, on is a leading brand in the sporting goods market with strong positions in footwear, apparel and hardware. The company currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for adidas' current fiscal-year sales and EPS indicate growth of 12.3% and 86.1%, respectively, from the year-ago period's reported figures. ADDYY has a trailing four-quarter negative earnings surprise of 48%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report lululemon athletica inc. (LULU) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report Birkenstock Holding PLC (BIRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
