Lululemon Athletica Inc. (NASDAQ: LULU) will issue its fourth-quarter earnings report next week. It is worth noting that the firm handily surpassed Wall Street projections in the preceding three quarters.
LULU will have a conference call after the market closes on March 29 to discuss its fourth-quarter results. Experts do not have a clear perspective on the outcomes.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
In previous reports, the firm beat predictions, but the end of last year was difficult for Lululemon Athletica Inc. (LULU), which might drag on profits. However, management and Wall Street expect fourth-quarter revenues to increase by at least 20% to more than $2.1 billion. Earnings per share will be at $3.27, a 27 percent increase year on year.
When announcing the quarter’s results, Lululemon Athletica is anticipated to release specifics about the new product, sports shoes. The Blissful Women’s Sneaker, the company’s first product, will be available online and at select shops in North America, China, and the United Kingdom on March 22. LULU intends to release three more women’s shoes in the first quarter, followed by a foray into the men’s shoe market in 2023.
The fragility of Lululemon Athletica’s Mirror online training business poses a concern. Management has already reduced its sales forecast to the $125-$130 million range. As a reminder, the previous revenue projection issued in early 2021 was $250 million to $275 million.
Furthermore, Lululemon Athletica Inc. (LULU) admits that Mirror will reduce yearly adjusted profits per share by 3 to 5 percent. This is the element that most concerns investors: while they acknowledge that the application may expand slowly, they are unwilling to accept that the company’s total earnings may suffer as a result.
As a result, Lululemon Athletica Inc. (LULU) may offer not only a report but also further information about new items and the prospects of the sports training app next week.
Lululemon Athletica Inc. (LULU) shares dipped -1.46 percent on Wednesday, closing at $310.42. The price fluctuated between $308.18 and $315.775 throughout the trading session. The earnings per share ratio for the firm was 6.66.
