LULU had a disappointing start to the year with a marginal beat on the top-line but the bottom-line coming in-line with estimates. The company's usual growth catalysts (such as not having to rely on markdowns and the China business) are no longer effective. My updated price target is where the company currently trades, leading to a rating downgrade from a BUY to a HOLD.
LULU's growth is slowing down across all regions, with comparable sales declining in Americas. Management lowered their full-year EPS guidance due to higher tariffs, a major reason for the selloff. LULU's Free Cash Flow has declined for four consecutive quarters.
LULU stock dips post-earnings as tariff concerns, rising costs and soft U.S. demand overshadow solid quarterly results.
Explore Lululemon's (LULU) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.
Lululemon (LULU) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
The retail sector is undoubtedly one of the most affected areas of the stock market today, especially as the uncertainty of trade tariffs keeps hitting the market from every direction. This uncertainty has made it difficult for companies to accurately forecast their earnings guidance since knowing where costs might end up can significantly derail financial models moving forward.
Lululemon's recent stock correction creates a compelling entry point for GARP investors, given its strong brand, margins, and global growth potential. Despite tariff headwinds and softer US sales, Lululemon maintains robust profitability, a healthy balance sheet, and double-digit international expansion. The company's premium valuation is justified by its operational excellence, innovation, and long runway for growth, especially outside North America.
Major U.S. equities indexes pushed higher to close out the trading week.
Popular athletic apparel brand Lululemon Athletica is seeing its share price crash today. As of this writing, the stock (Nasdaq: LULU) is down nearly 20% in early-morning trading.
Apparel maker's stock falls 20% after company lowers its earnings forecast, citing trade war and a pullback in consumer spending.
LULU's Q1 results show strength across regions, channels and product categories. However, rising tariffs point toward margin pressures from elevated costs.
Lululemon Athletica Inc (NASDAQ:LULU) stock is down 19.7% to trade at $265.71, after the athleisure company's fiscal second-quarter and full-year guidance missed expectations, with tariff pressures the culprit.