lululemon athletica (NASDAQ:LULU) Announces Earnings Results, Beats Expectations By $1.13 EPS

Key Points

• lululemon exceeded earnings expectations, reporting quarterly EPS of $2.92 versus the $1.79 consensus estimate. Revenue totaled $2.42 billion, slightly below expectations of $2.46 billion.
• Shares rose 1.4% to $121.77 following the results, though the stock remains well below its 12-month high of $225.98.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and a $148.38 average price target, while insiders own 0.54% and institutional investors control 85.20% of shares.

lululemon athletica (NASDAQ:LULU - Get Free Report) announced its earnings results on Thursday. The apparel retailer reported $2.92 earnings per share for the quarter, topping the consensus estimate of $1.79 by $1.13, FiscalAI reports. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The business had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.46 billion.

lululemon athletica Trading Up 1.4%

Shares of LULU stock traded up $1.70 during trading hours on Thursday, hitting $121.77. The company's stock had a trading volume of 8,049,656 shares, compared to its average volume of 3,146,350. The business has a fifty day moving average of $118.56 and a 200-day moving average of $137.00. lululemon athletica has a twelve month low of $104.44 and a twelve month high of $225.98. The stock has a market cap of $14.45 billion, a price-to-earnings ratio of 9.83, a P/E/G ratio of 2.46 and a beta of 0.87.

Insider Activity

In related news, Director Charles V. Bergh bought 4,275 shares of lululemon athletica stock in a transaction that occurred on Monday, June 15th. The shares were purchased at an average price of $117.05 per share, with a total value of $500,388.75. Following the purchase, the director owned 10,365 shares in the company, valued at $1,213,223.25. This represents a 70.20% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.54% of the stock is owned by corporate insiders.

Institutional Trading of lululemon athletica

A number of large investors have recently made changes to their positions in the stock. Uniplan Investment Counsel Inc. acquired a new stake in shares of lululemon athletica during the 4th quarter worth about $26,000. DV Equities LLC acquired a new position in shares of lululemon athletica in the fourth quarter valued at approximately $31,000. GW&K Investment Management LLC raised its position in shares of lululemon athletica by 70.3% in the fourth quarter. GW&K Investment Management LLC now owns 189 shares of the apparel retailer's stock valued at $39,000 after buying an additional 78 shares during the last quarter. Quattro Advisors LLC purchased a new position in shares of lululemon athletica during the fourth quarter valued at approximately $46,000. Finally, Golden State Wealth Management LLC lifted its stake in shares of lululemon athletica by 43.6% during the fourth quarter. Golden State Wealth Management LLC now owns 280 shares of the apparel retailer's stock valued at $58,000 after buying an additional 85 shares during the period. Institutional investors and hedge funds own 85.20% of the company's stock.

Analyst Upgrades and Downgrades

LULU has been the topic of a number of analyst reports. Morgan Stanley reiterated an "underweight" rating and issued a $93.00 price objective on shares of lululemon athletica in a research report on Monday, July 6th. BNP Paribas Exane cut lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 target price on the stock. in a research report on Friday, June 5th. Zacks Research raised lululemon athletica from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 19th. UBS Group reduced their price target on lululemon athletica from $124.00 to $120.00 and set a "neutral" rating for the company in a report on Tuesday, August 25th. Finally, Needham & Company LLC restated a "hold" rating on shares of lululemon athletica in a research note on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-five have given a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $148.38.

About lululemon athletica

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company's product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.

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