Lululemon Athletica inc. (NASDAQ:LULU) announced that the Company is updating its net revenue and earnings guidance for the fourth quarter of fiscal 2016 ending January 29, 2017.
For the fourth quarter, we now anticipate that net revenue will be in the range of $775 million to $785 million based on a total comparable sales increase in the mid-single digits on a constant dollar basis. This compares to our previous guidance of net revenue in the range of $765 million to $785 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 $0.99 to $1.01 for the fourth quarter. The previous EPS guidance for the fourth quarter was a range of $0.96 to $1.01. EPS guidance continues to assume 137.3 million diluted weighted-average shares outstanding and a 31.2% tax rate.
“We had a strong holiday season in both our store and digital channels driven by our assortment, operational execution and guest experience. Our entire team is excited about the momentum in the business and I am grateful to our global collective for their great work and enthusiasm. We look forward to 2017 as we continue to advance on our long term goals,” said Laurent Potdevin, CEO of lululemon.
Management will be meeting with analysts and investors and presenting at the ICR Conference in Orlando, Florida this week. (Original Source)
Shares of Lululemon Athletica Inc. are currently falling 0.34% to $68.04, or down $0.23 in pre-market trading Monday. LULU has a 1-year high of $81.81 and a 1-year low of $52.71. The stock’s 50-day moving average is $63.41 and its 200-day moving average is $67.02.
On the ratings front, Lululemon Athletica Inc. has been the subject of a number of recent research reports. In a report issued on January 5, RBC analyst Richard Chamberlain reiterated a Buy rating on LULU, with a price target of $80, which implies an upside of 17% from current levels. Separately, on January 4, KeyBanc’s Jessica Schmidt maintained a Buy rating on the stock and has a price target of $89.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Richard Chamberlain and Jessica Schmidt have a yearly average return of 0.0% and 6.2% respectively. Chamberlain has a success rate of 41% and is ranked #2941 out of 4350 analysts, while Schmidt has a success rate of 20% and is ranked #2305.
Sentiment on the street is mostly bullish on LULU stock. Out of 19 analysts who cover the stock, 11 suggest a Buy rating , 7 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $80.33, which represents a potential upside of 18% from where the stock is currently trading.
lululemon athletica, inc. designs and retails athletic apparels primarily in North America and Australia. It offers a comprehensive 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 corporate owned stores and direct to consumer segments. Its yoga-inspired apparel is marketed under the Lululemon Athletica brand name.