Lululemon Athletica inc. (NASDAQ:LULU) investors are clearly pleased with the yoga-wear giant’s second-quarter results, bidding up the stock 7% to $61.50 in after-hours trading. Indeed, the company reported earnings that came in above Wall Street expectations.
Specifically, Lululemon posted Q2 EPS of $0.36 on revenue of $581.1 million, beating consensus estimates of $0.35 and $567 million, respectively.
Looking ahead, the company guided third quarter revenues in the range of $605 million to $615 million, while diluted earnings per share are expected to be in the range of $0.33 to $0.35 for the quarter. In addition, for the full fiscal 2017, the company guided revenue to a range of $2.545 billion to $2.595 billion, while diluted earnings per share for the year are seen in the range of $2.04 to $2.11.
lululemon CEO Laurent Potdevin commented, “Our performance reflects the growing global consumer response to lululemon’s unique position as the leading brand that defines an active, mindful lifestyle. Through continuing to deliver category-defining product innovation, we are creating experiences that our guests, both existing and new, desire. This strong brand momentum reinforces my confidence in our long-term strategy.”
Potdevin continued, “The acceleration that we have seen across the business in the second quarter enables us to take another positive step on our path towards achieving $4 billion in revenue by 2020. Finally, I would also like to express my gratitude for the constant energy and determination of our teams and ambassadors, who powerfully bring our brand to life.”
On the ratings front, LULU has been the subject of a number of recent research reports. In a report issued on August 29, Canaccord analyst Camilo Lyon reiterated a Sell rating on LULU, with a price target of $41, which represents a potential downside of 29% from where the stock is currently trading. Separately, on the same day, Susquehanna’s Sam Poser reiterated a Hold rating on the stock and has a price target of $64.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Camilo Lyon and Sam Poser have a yearly average loss of -6.6% and a return of 6.5% respectively. Lyon has a success rate of 42% and is ranked #4457 out of 4629 analysts, while Poser has a success rate of 55% and is ranked #601.
Sentiment on the street is mostly neutral on LULU stock. Out of 17 analysts who cover the stock, 9 suggest a Hold rating , 7 suggest a Buy and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $63, which implies an upside of 9% from current levels.
Lululemon Athletica, Inc. designs and retails athletic apparels primarily in North America and Australia. It offers a line of apparel and accessories, including fitness pants, shorts, tops and jackets designed for athletic pursuits such as yoga, running and general fitness. The company operates through the following segments: Company-Operated Stores, and Direct to Consumer.