Is Lululemon Athletica Inc. (LULU) a good option for value hunters? – Marketing Sentinel
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Is Lululemon Athletica Inc. (LULU) a good option for value hunters?

During the last week of March, Lululemon Athletica Inc. (LULU) revealed its Q4 2020 financial results. The LULU stock has also announced growth in digital sales and an optimistic outlook for the current year. Lululemon’s revenue is estimated to surpass $ 5.5 billion.

Lululemon Athletica continued to suffer from sales declines in its traditional stores during the quarter. As a consequence, like-for-like sales dropped nearly 30%. Although the online sales segment declined, it grew at a rate of 94 % YoY. Among the reasons for the growth was a new clothing collection that found a new market. The growth of sales at Lululemon Athletica was unhindered by supply chain issues.

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Lululemon Athletica’s direct sales revenue increased to 52 % in the recent quarter. Compared to one year before, it was 33%. Despite additional expenditures on the online platform, gross margins soared to 59% of sales, and adjusted operating margins also soared to 27% of sales. EPS rose 11 % year-over-year to $2.52.

During the pandemic, Lululemon Athletica Inc. (LULU) endured an increase in stock – a pressing obstacle for several retailers. The LULU stock considers this to be positive despite this since no price cuts are expected this year to reduce inventory. Additionally, Lululemon Athletica expects its revenue to increase by 25 % compared with last year, to $ 5.6 billion. The LULU stock’s revenue is expected to surpass $1 billion in the first quarter, compared with $652 million in its retail trade a year ago.

Based on their forecast, Lululemon Athletica seems to have overcome the negative trends connected to the coronavirus. The LULU stock may now be able to bounce back and grow as well.

At the last after-market check, Lululemon Athletica Inc. (LULU) shares were up 0.15% at $299.2. At the close of the previous session, LULU’s stock stood at $298.75, dropping -0.77 percent or -$2.32. During the day, LULU stock fluctuated between $295.89 and $302.86. 2.15 million shares were exchanged, more than its 50-day average daily volume of 1.54 million and above its Year to date average of 1.5 million. Over the past 12 months, the LULU stock has gained 61.06%, and in the past week, the stock has moved down to -4.86%. The stock has lost -12.40% over the last six months, and over the last three months, it has declined by -14.16%. The stock has returned -14.16% so far this year. Additionally, the stock is currently trading at a price-to-earnings ratio of 66.42.

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