Workout attire maker Lululemon (LULU) topped fourth-quarter estimates however gave combined full-year steering late Tuesday. LULU inventory fell.
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Lululemon Earnings
Estimates: Analysts anticipate EPS of $2.49, 9% above the year-ago quarter, on income of $1.66 billion, a 19% enhance from final yr, in response to Zacks Investment Research.
Comparable gross sales are seen rising 10.1%, or 11.4% on a relentless forex foundation, in response to Consensus Metrix.
Results: EPS of $2.58 on income of $1.73 billion, as direct-to-consumer web income soared 94%. Comparable gross sales elevated 21%, or 20% on a relentless greenback foundation. But adjusted working margin decreased 290 foundation factors to 26.9%.
Outlook: Q1 EPS of 86-90 cents, above consensus for 84 cents, on income of $1.1 billion-$1.13 billion, above consensus for $1.01 billion. Full-year EPS of $6.30-$6.45, under consensus for $6.65, on income of $5.55 billion-$5.65 billion, above views for $5.41 billion.
Lululemon operates and franchises almost 500 shops within the U.S., Canada, Australia, the U.Ok. and New Zealand. Like most retailers throughout the pandemic, it has relied closely on digital gross sales to shore up misplaced income resulting from retailer closures. Online gross sales elevated 94% to 43% of whole income within the final quarter.
Also final quarter, Lululemon started promoting the $1,500 Mirror at-home train tools maker in 18 shops and on its web site. It purchased the startup for $500 million in 2020.
The Mirror competes with Peloton (PTON)’s interactive train bikes, in addition to Apple’s (AAPL) Fitness+ app. Nike (NKE) has additionally been increasing in at-home health whereas its attire competes with Lululemon’s.
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LULU Stock
Shares dropped 0.2% late after closing up 0.3% at 317.09 on the stock market today. LULU stock has a buy point of 387.47 from a protracted consolidation, in response to MarketSmith chart analysis.
Lululemon’s relative strength line is trending upward. The inventory has a stable EPS Rating of 86, because it tries to construct on a return to profitability in Q3 after two straight quarters of losses.
As the financial system reopens, retailers like Lululemon face supply-chain points associated to port congestion and container shortages. Shipping congestion attributable to the blockage on the Suez Canal final week may additionally trigger ripples amongst suppliers.
Nike reported reported mixed fiscal third-quarter results earlier this month. North America income declined 10% to $3.56 billion resulting from provide chain challenges, together with international container shortages and U.S. port congestion.
Meanwhile, Peloton may be an rising competitor in attire because it not too long ago partnered with German athletic-gear large Adidas (ADDYY).
Please comply with Adelia Cellini Linecker on Twitter @IBD_Adelia.
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