Lululemon Athletica today
Lululemon Athletica
(As of 6/12/2024 at 06:03 PM ET)
- 52 week range
- $226.01
▼
$516.39
- P/E ratio
- 30.88
- Price target
- $379.52
Lululemon Nasdaq: Lulu It still faces headwinds like other retailers, but Q3 results demonstrate the resilience of the business and the strength of its growth trajectory. Among the highlights of the report and the market response were analysts who were thrilled with this news. Although one valuer says sell the stock, the rest of the data is bullish, with 19 of the 19 price target revisions increasing, including the down.
Where do analysts see this stock heading? After stripping out the highs and lows, the average of 17 analysts is $401, with 70% of targets, including the high of $440, above the consensus. The bottom line is that analysts see this stock advancing 15% to 20% over the next 12 months, and the sentiment trend is upward; Analysts are likely to continue raising their target range as the year progresses.
Lululemon’s strong, resilient business delivers results
Lululemon had a strong quarter, doubling the retail industry average with overall growth of 9% and beating the reported MarketBeat consensus by 170 basis points. Global corporates led the 4% on strength, 3% on a currency-neutral basis, with international strength offsetting weaker results in the Americas. Revenue in the Americas rose 2%, and new stores offset a 2% decline in comps. International segment sales grew 30% from FXN with gains of 22% from stores, and are expected to remain strong and support growth in 2025.
Margin news is another area of strength. The company expanded its gross and operating margins, gaining 40 basis points at the gross level and 70 basis points at the operating level, to deliver supported net results. Diluted earnings of $2.87 rose 13% for the additional week and beat consensus by $0.15, with margins expected to remain strong as the year progresses.
Guidance for the fourth quarter and fiscal year was improved due to strengths in the third quarter and retail trends, placing the fourth quarter growth target at 8% to 10% flat and the fourth quarter and fiscal year targets above consensus analyst expectations.
One important detail is cash flow. The company is growing and improving the quality of its cash flows, allowing it to aggressively repurchase stock while maintaining a strong balance sheet and healthy business. At the end of the quarter, balance sheet highlights include increased cash compared to last year, 8% increase in inventory, and current and total assets. Liabilities also rose but were offset by asset gains, resulting in equity rising 13%.
Regarding repurchases, repurchase activity has reduced the number by 3% compared to last year, and 1.5% since the beginning of the year, and is expected to continue at the same pace as the third quarter in the fourth quarter and fiscal year 2025. The Board of Directors increased the authorization by $1 billion Bringing the total available to $1.8 billion, enough for four quarters at the current pace.
Lululemon’s stock price is reaching an inflection point
Lululemon Athletica Stock Forecast Today
$379.52
-5.03% downsideModerate purchase
Based on 31 analyst ratings
| High expectations | $540.00 |
|---|---|
| Average expectations | $379.52 |
| Low expectations | $220.00 |
Lululemon Athletica Stock Forecast Details
Lululemon’s stock price movement after the release is bullish, but the market is facing hurdles. Price action has risen to around $375, in line with a potentially strong resistance point in the middle of a multi-year trading and consolidation range. Because of the gap formed by the movement, the market may decline from this level before moving higher. The market could return to the previous session’s open near $345 in this scenario.
However, the strong upward movement and analysts’ response could provide enough momentum for this market to move higher without the price falling. The crucial resistance target is near $375 and could be broken soon. In this scenario, this market would face another hurdle near $400, likely less robust than $375 and easily cleared, opening the door to a larger move towards the upper end of the analyst range and then the upper end of the longer-term trading range. .
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