Company Update (NASDAQ:LULU): Lululemon Athletica inc. Updates Guidance for Fourth Quarter of Fiscal 2015 Ahead of Presentation at the ICR Conference

Lululemon Athletica inc. (NASDAQ:LULU) announced that the Company is updating its net revenue and earnings guidance for the fourth quarter of fiscal 2015 ending January 31, 2016.

For the fourth quarter, we now anticipate that net revenue will be in the range of $690 million to $695 million, which represents an increase of approximately 15% compared to the fourth quarter of fiscal 2014, or on a constant dollar basis, an increase of approximately 19%. This is based on a total comparable sales increase in the high-single digits on a constant dollar basis. This compares to our previous guidance of net revenue in the range of $670 million to $685 million for the fourth quarter based on a total comparable sales increase in the mid-single digits on a constant dollar basis.

We also now expect diluted earnings per share will be in the range of $0.78 to $0.80 for the fourth quarter. The previous EPS guidance for the fourth quarter was a range of $0.75 to $0.78. EPS guidance continues to assume 139.0 million diluted weighted-average shares outstanding and a 29.5% tax rate.

“We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks. Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance. We are looking forward to 2016 and will enter the year with a very strong leadership team across the company that is relentlessly driving our strategic priorities and long term vision,” said Laurent Potdevin, CEO of lululemon athletica. (Original Source)

Shares of Lululemon Athletica are up nearly 4% in after-hours trading. LULU has a 1-year high of $70 and a 1-year low of $43.14. The stock’s 50-day moving average is $51.24 and its 200-day moving average is $55.95.

On the ratings front, Lululemon has been the subject of a number of recent research reports. In a report issued on January 4, Wells Fargo analyst Ike Boruchow upgraded LULU to Buy, with a price target of $65, which represents a potential upside of 19.3% from where the stock is currently trading. Separately, on the same day, Jefferies Co.’s Randal Konik upgraded the stock to Buy and has a price target of $70.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ike Boruchow and Randal Konik have a total average return of 3.3% and -3.3% respectively. Boruchow has a success rate of 45.5% and is ranked #1029 out of 3610 analysts, while Konik has a success rate of 38.0% and is ranked #3165.

Overall, one research analyst has rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 10 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 $60.29 which is 11% above where the stock opened today.

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.


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