- Lululemon’s forecast for third-quarter net revenue is between $2.47 billion and $2.50 billion, which falls short of the estimated $2.56 billion.
- The forecasted EPS (Earnings Per Share) for the third quarter is between $2.18 and $2.23, below the estimated $2.90.
- Second-quarter results showed an EPS of $3.10, which exceeded the estimate of $2.87.
- Net revenue for the second quarter was $2.53 billion, slightly below the estimated $2.54 billion.
- Gross margin was 58.5%, surpassing the estimated 57.5%.
- Operating margin reached 20.7%, above the estimated 18.9%.
- Inventory levels stood at $1.72 billion, in line with the estimate of $1.7 billion.
- Lululemon expanded its location count to 784, above the estimate of 780.7.
- For 2025, Lululemon expects annual net revenue to range from $10.85 billion to $11.00 billion, growing by 2% to 4%, or 4% to 6% excluding the 53rd week of 2024.
- Annual diluted EPS for 2025 is projected to be between $12.77 and $12.97.
- The company anticipates third-quarter net revenue growth of 3% to 4% for 2025.
- Post-market trading saw shares fall by 5.4% to $195.01, with 32,360 shares traded.
- Investment recommendations include 18 buys, 15 holds, and 5 sells.
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Lululemon Athletica on Smartkarma
Independent analysts on Smartkarma have provided contrasting views on Lululemon Athletica. MBI Deep Dives‘ coverage on “Lululemon 1Q’25 Update” expressed bearish sentiment, highlighting that Lululemon’s US growth has slowed to low single digits despite an easier comparison to the previous year. Conversely, Baptista Research, with a bullish stance, published “Can Lululemon Athletica Strike Back? Some Bold Moves to Crush Tariffs & Supply Chain Chaos!” praising Lululemon’s revenue growth in various regions, including a significant increase in China and strong performance in Canada.
Furthermore, Baptista Research‘s report “Lululemon Athletica Faces New Tariff Pressures Through Vietnam” discussed the company’s growth achievements in the fourth quarter, with total revenue increasing year-over-year and notable improvements in operating margin and earnings per share. On the contrary, MBI Deep Dives‘ analysis in “Lululemon 4Q’24 Update” pointed out the potential challenges ahead, indicating a shift from double-digit revenue growth in previous years to more modest growth expectations for 2025. These diverse perspectives showcase the varying opinions within the analyst community regarding Lululemon Athletica‘s performance and future prospects.
A look at Lululemon Athletica Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
lululemon athletica Inc., known for designing and selling athletic clothing worldwide, has a mixed outlook based on its Smartkarma Smart Scores. With a high Growth score of 4, the company is expected to see continued expansion and development in the future. This is complemented by a Resilience score of 4, indicating the company’s ability to weather challenges and adapt to market changes effectively. However, its Value and Momentum scores are more moderate at 2, suggesting a balanced but not exceptional performance in terms of stock value and market momentum.
While lululemon Athletica may not offer significant dividends, with a low score of 1 in that category, investors can potentially benefit from the company’s strong growth prospects and resilience in the face of uncertainties. As the company remains focused on producing fitness apparel for various activities, including yoga and running, its long-term success may be driven by its ability to capitalize on these trends and maintain its position in the athletic clothing market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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