Research Alert: Lululemon Posted Better-than-expected Earnings But Guidance Disappoints

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Research Alert: Lululemon Posted Better-than-expected Earnings But Guidance Disappoints

, MT Newswires - 5:35 PM ET 3/27/2025 default

05:35 PM EDT, 03/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Lululemon posted better-than-expected earnings of $6.14 vs. $5.29, $0.27 above consensus estimates on revenues of $3.61B vs. $3.21B, $30M above estimates. By region in Q4, the Americas comparable revenues (without the 53rd week) were down flat Y/Y and International increased 20%. Zooming in, comparable revenues increased 26% in China and 14% for Rest of World. Q4 gross margin expanded 100 bps Y/Y to 60.4%. LULU continues to repurchase shares aggressively, buying back $332M in shares during the quarter. Shares plummeted 9% after hours and due to the company's Q1 and full-year guidance, in our opinion. The company guided for EPS between $14.95 and $15.15, while analyst consensus is $15.40 for FY 26 (Jan.). The company also is guiding for no EPS growth in Q1. We believe analysts and investors will start to look past the weakness in the first half of 2025 and we expect the company to start to see dramatic improvements to inventory and margins moving into the second half.

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