Stock Update (NASDAQ:LULU): Lululemon Athletica inc. Announces Second Quarter Fiscal 2015 Results


Lululemon Athletica inc. (NASDAQ:LULU) announced financial results for the second quarter ended August 2, 2015.

The Company ended the second quarter of fiscal 2015 with $541.3 million in cash and cash equivalents compared to $725.1 million at the end of the second quarter of fiscal 2014. Inventory at the end of the second quarter of fiscal 2015 totaled $280.6 million compared to $180.5 million at the end of the second quarter of fiscal 2014. The Company ended the quarter with 336 stores.

Laurent Potdevin, lululemon’s CEO, stated: “We exceeded our revenue targets for the past quarter, supported by strong performance from both our store and e-commerce channels. Looking to the remainder of the year, our team is laser focused on meeting our strategic key goals: grow our global collective, relentlessly innovate our product lines and continue to create transformational experiences for our guests.” Mr. Potdevin continued: “As our momentum continues to build, we are excited by the progress made with our international expansion, the launch of our new women’s pant wall last week, and successful brand-building events occurring around the globe.”

Updated Outlook

For the third quarter of fiscal 2015, we expect net revenue to be in the range of $477 million to $482 million based on total comparable sales in the high single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $0.35 to $0.37 for the quarter. This guidance assumes 141.6 million diluted weighted-average shares outstanding and a 30.2% tax rate. The guidance does not reflect potential future repurchases of the Company’s shares.

For the full fiscal 2015, we now expect net revenue to be in the range of $2.025 billion to $2.055 billion based on total comparable sales in the high single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $1.87 to $1.92 for the full year. This guidance assumes 141.8 million diluted weighted-average shares outstanding and a 30.2% tax rate. The guidance does not reflect potential future repurchases of the Company’s shares. (Original Source)

Shares of Lululemon Athletica closed yesterday at $64.05. LULU has a 1-year high of $70 and a 1-year low of $37.81. The stock’s 50-day moving average is $63.24 and its 200-day moving average is $64.33.

On the ratings front, Lululemon has been the subject of a number of recent research reports. In a report issued on September 8, Mizuho analyst Betty Chen maintained a Hold rating on LULU, with a price target of $63, which represents a slight downside potential from current levels. Separately, on the same day, Canaccord Genuity’s Camilo Lyon maintained a Hold rating on the stock and has a price target of $60.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Betty Chen and Camilo Lyon have a total average return of -3.1% and 6.7% respectively. Chen has a success rate of 41.1% and is ranked #3149 out of 3752 analysts, while Lyon has a success rate of 53.7% and is ranked #500.

Overall, 6 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $72.43 which is 13.1% above where the stock closed yesterday.

Lululemon Athletica Inc is a designer and retailer of technical athletic apparel operating in North America and Australia. Its yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names.