Athletic apparel retailer Lululemon (NASDAQ: LULU) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
Lululemon beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $2.40 billion, up 8.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Lululemon a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lululemon’s revenue to grow 11.8% year on year to $3.58 billion, slowing from the 15.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.87 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lululemon has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at Lululemon’s peers in the apparel retailer segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Gap’s revenues decreased 3.5% year on year, beating analysts’ expectations by 1.9%, and Urban Outfitters reported revenues up 9.4%, in line with consensus estimates. Gap traded up 18.6% following the results while Urban Outfitters was also up 8.1%.
Read our full analysis of Gap’s results here and Urban Outfitters’s results here.
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