News & Analysis

Lululemon tops estimates – the stock is rising

30 March 2023 By Klavs Valters


Lululemon athletica inc. (NASDAQ: LULU) announced Q4 and full-year earnings results on Wednesday.

World’s second largest sporting goods company reported revenue of $2.772 billion for the quarter (up by 30% year-over-year or 33% on a constant currency basis) vs. $2.701 billion estimate.

Earnings per share (EPS) also topped analyst expectations at $4.40 per share (up by 30.5% year-over-year) vs. $4.259 per share expected.

Full-year revenue reported at $8.1 billion (up by 30% vs. 2021), EPS at $10.07 per share.

Lululemon expects revenue of $1.890 billion to $1.930 billion for Q1.

EPS expected to be between $1.93 to $2.00 for the quarter.

CEO and CFO commentary

“In the fourth quarter and full year 2022, we delivered strong results across the business driven by our innovative products, powerful guest experiences, and strategic market expansion. Our continued high level of performance is a reflection of the hard work and agility of our incredible teams and the deep connections they create with our guests and communities around the world. As we enter 2023, we look forward to another year of strong momentum across the globe and delivering on our Power of Three ×2 growth plan,” Calvin McDonald, CEO of the company said in a press release.

Meghan Frank, CFO of Lululemon also commented on the latest results and delivering for its shareholders: “We are pleased with our performance in the fourth quarter, which remained balanced across product category, channel, and regions. Our ability to exceed our annual revenue target in a dynamic operating environment is a testament to the enduring strength of the lululemon brand. Looking ahead, we remain optimistic regarding our ability to deliver sustained growth and long-term value for all our stakeholders.”

The latest results had a positive impact on the stock price. Shares were up by +12.72% at the end the trading session on Wednesday at $360.87 a share.

Stock performance

  • 1 month: +16.66%
  • 3 months: +16.86%
  • Year-to-date: +12.69%
  • 1 year: -4.21%

Lululemon price targets

  • TD Cowen: $500
  • Baird: $425
  • B of A Securities: $410
  • BMO Capital: $340
  • Credit Suisse: $420
  • Stifel: $460
  • Wells Fargo: $425
  • Guggenheim: $440
  • Citigroup: $440
  • Telsey Advisory Group: $425
  • Keybanc: $390
  • Barclays: $368
  • JP Morgan: $430

Lululemon athletica inc. is the 358th largest company in the world with a market cap of $46.03 billion, according to CompaniesMarketCap.

You can trade Lululemon athletica inc. (NASDAQ: LULU) and many other stocks from the NYSE, NASDAQ, HKEX, ASX, LSE and DE with GO Markets as a Share CFD.

Sources: Lululemon athletica inc., TradingView, MarketWatch, MetaTrader 5, Benzinga, CompaniesMarketCap

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