LULU
Lululemon Looks Ahead to Earnings Amid Recovery
Article Summary
HOLD- Lululemon Athletica Inc. (NASDAQ: LULU) is set to report fiscal-second quarter earnings after Thursday's close, with analysts expecting $1.67 EPS on revenue of $2.43 billion.
- The options pits are pricing in a post-earnings swing of 13.8% regardless of direction, much larger than the 10.9% move the stock has average over the last eight quarters.
- The retailer is trying to stay in recovery mode after falling to seven year lows on May 20, though year-to-date the equity has shed 36% despite sports six wins out of seven previous daily sessions.
- Short interest represents 6.02% of the stock's available float and has climbed nearly 40% over the past month, creating potential for additional buying pressure should the shares continue higher.
- The Schaeffer's Volatility Scorecard sits at a lofty 95 out of 100 indicating Deckers stock has tended to exceed option traders' volatility expectations during the past year.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.9% | 25% | 20.0 ptsMinimal (4.9%) - Very weak |
| EPS Growth Next 5Y ? | 2.2% | 25% | 10.0 ptsVery Weak (2.2%) - Minimal expectations |
| Target Price Upside ? | 28.9% | 20% | 75.0 ptsSignificant Upside (28.9%) - Target: $170.22 vs Current: $132.09 |
| Gross Margin % ? | 56.5% | 15% | 80.0 ptsVery Healthy (56.5%) - High-quality margins |
| Drawdown from 52-Wk High ? | -61.2% | 15% | 100.0 ptsDeep Discount (-61.2%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About LULU
- lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally.
- It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities.
- The company also provides fitness-inspired accessories.
- It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website.
- The company was founded in 1998 and is based in Vancouver, Canada.