Expected Earnings and Growth Narrative: Lululemon Athletica Inc. (LULU)  – Marketing Sentinel
Home  »  Today's Pick   »  Expected Earnings and Growth Narrative: Lululemon ...

Expected Earnings and Growth Narrative: Lululemon Athletica Inc. (LULU) 

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. 

Top 5 Cheap Stocks to Own Right Now

While finding safe stocks with the potential for monster gains isn't always easy, we've found a few that could pay out well. In fact, within our report, "Top 5 Cheap Stock to Own Right Now", we have identified five stocks we believe could appreciate the most even if you just have $1,000 to invest.

Sign up here to get your free report now. .

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.

Leave a Comment

Your email address will not be published.

On Key

Related Posts

[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]