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Lululemon (LULU) Surges on Strong Earnings, Double-Digit Comps
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Lululemon Athletica (LULU - Free Report) just announced its fourth quarter fiscal 2017 results, posting adjusted earnings of $1.33 and revenues of $928.8 million.
Heading into the report, Lululemon shares are up just 1.5% year-to-date, and have fallen around 2.6% in the past trading week. LULU is currently up about 8% to just under $85 per share shortly after the report was released.
Currently, LULU is a #2 (Buy) on the Zacks Rank, and estimates have remained stable for the current years over the course of the past month.
Lululemon:
Beat earnings estimates. The athleisure giant reported adjusted earnings of $1.33 per share, surpassing the Zacks Consensus Estimate of $1.27 per share. This number excluded the impact of the ivivva restructuring and the U.S. tax reform.
Beat revenue estimates. The company saw sales of $928.8 million, topping our consensus estimate of $900.15 million and growing 18% year-over-year.
Total comparable sales surged 12%, with comparable store sales up 2%. Lulu also said that direct to consumer net revenues were up 44%.
Gross margin came to 56.3%, an increase of 210 basis points compared to the prior year quarter. Operating margin was 27.6%, increasing 270 bps compared to Q4 2016.
For Q1 2018, Lulu expects net revenues to be in the range of $612 million to $617 million based on a total comparable sales increase in the low double digits. Diluted EPS should fall between 44 cents to 46 cents per share.
"We are seeing strong momentum across our business as we now move into 2018, which is further positioning us to achieve our 2020 revenue goal of $4 billion. Importantly, we would like to thank our store educators, ambassadors, and the lululemon collective around the world for their energy and passion that is enabling our continued success,” said Stuart Haselden, Chief Operating Officer.
Check out this graph that looks at Lululemon’s price, consensus, and EPS surprise:
lululemon athletica inc. Price, Consensus and EPS Surprise
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
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Lululemon (LULU) Surges on Strong Earnings, Double-Digit Comps
Lululemon Athletica (LULU - Free Report) just announced its fourth quarter fiscal 2017 results, posting adjusted earnings of $1.33 and revenues of $928.8 million.
Heading into the report, Lululemon shares are up just 1.5% year-to-date, and have fallen around 2.6% in the past trading week. LULU is currently up about 8% to just under $85 per share shortly after the report was released.
Currently, LULU is a #2 (Buy) on the Zacks Rank, and estimates have remained stable for the current years over the course of the past month.
Lululemon:
Beat earnings estimates. The athleisure giant reported adjusted earnings of $1.33 per share, surpassing the Zacks Consensus Estimate of $1.27 per share. This number excluded the impact of the ivivva restructuring and the U.S. tax reform.
Beat revenue estimates. The company saw sales of $928.8 million, topping our consensus estimate of $900.15 million and growing 18% year-over-year.
Total comparable sales surged 12%, with comparable store sales up 2%. Lulu also said that direct to consumer net revenues were up 44%.
Gross margin came to 56.3%, an increase of 210 basis points compared to the prior year quarter. Operating margin was 27.6%, increasing 270 bps compared to Q4 2016.
For Q1 2018, Lulu expects net revenues to be in the range of $612 million to $617 million based on a total comparable sales increase in the low double digits. Diluted EPS should fall between 44 cents to 46 cents per share.
"We are seeing strong momentum across our business as we now move into 2018, which is further positioning us to achieve our 2020 revenue goal of $4 billion. Importantly, we would like to thank our store educators, ambassadors, and the lululemon collective around the world for their energy and passion that is enabling our continued success,” said Stuart Haselden, Chief Operating Officer.
Check out this graph that looks at Lululemon’s price, consensus, and EPS surprise:
lululemon athletica inc. Price, Consensus and EPS Surprise
lululemon athletica inc. Price, Consensus and EPS Surprise | lululemon athletica inc. Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>