tiprankstipranks
LULU Earnings: Lululemon Tanks 10% on Soft Guidance
Market News

LULU Earnings: Lululemon Tanks 10% on Soft Guidance

Story Highlights

Lululemon tanked in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2023 along with soft guidance.

Shares of retailer Lululemon (NASDAQ:LULU) tanked in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2023 along with soft guidance. Earnings per share came in at $5.29, which beat analysts’ consensus estimate of $5 per share.

Pick the best stocks and maximize your portfolio:

Sales increased by 15.9% year-over-year, with revenue hitting $3.21 billion. This beat analysts’ expectations by $10 million. Gross profit increased to $1.9 billion, which equates to a 25% growth rate. Furthermore, adjusted operating margin increased by 20 basis points to 28.5%.

Looking forward, management now expects revenue and adjusted earnings per share for Q1 2024 to be in the ranges of $2.175 billion to $2.2 billion and $2.35 to $2.40, respectively. For reference, analysts were expecting $2.26 billion in revenue along with an adjusted EPS of $2.55.

Is LULU a Good Stock to Buy Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on LULU stock based on 15 Buys, three Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 56% rally in its share price over the past year, the average LULU price target of $516.16 per share implies 8.73% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

Related Articles
TheFlyDutch Bros names Venki Krishnababu chief technology, information officer
Bernard ZamboninWhy Nike’s (NKE) Upcoming Q2 Earnings Don’t Inspire Confidence
TheFlyTrump Trade: Smaller, mid-size brands seen as most impacted by China tariffs
Go Ad-Free with Our App