lululemon athletica inc. (LULU) is likely to witness top and bottom-line growth when it reports fourth-quarter fiscal 2024 results on March 27, after market close. The Zacks Consensus Estimate for fiscal fourth-quarter sales is pegged at $3.6 billion, indicating an 11.7% increase from the year-ago quarter's reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The consensus estimate for the company's fiscal fourth-quarter earnings is pegged at $5.85 per share, suggesting 1 ...

Apparel retailer Lululemon Athletica Inc (NASDAQ:LULU) is slated to report fourth-quarter earnings after the market closes on Thursday, March 27. Over the last two years, LULU has moved higher following all but one of its last eight earnings reports, including a 16% post-earnings pop in December. The stock has averaged a next-day swing of 9%, regardless of direction, though this time around, the options pits are pricing in a slightly larger move of 13.9%.Shares were last seen 3.7% higher at $334.57, though ...

Market Overview - The stock market was due for a correction after two strong years of returns, with the S&P 500 trading at a P/E multiple of 30, significantly above its historical average of 16 [1] Investment Strategy - A recommended strategy is to focus on quality businesses that are trading at discounts to the market average P/E [2] Company Analysis: Constellation Brands - Constellation Brands is a leading beverage company, particularly in imported beer, with a forward P/E of 12.5 and an above-average dividend yield [3][6] - The company reported low-single-digit sales growth for its beer portfolio, with management noting competitive pricing and tariffs on imports from Mexico as potential challenges [4] - Management projects beer sales growth of 4% to 7% in fiscal 2025, which may offset declining wine sales [5] - The company has a consistent revenue growth rate of 7% over the last decade and offers a quarterly dividend of $1.01, translating to a forward yield of 2.27% [6] - Constellation shares trade at a price-to-CFO multiple of 11, with potential for a 61% return if it returns to its 10-year median CFO multiple of 17.8 [7] Company Analysis: Lululemon Athletica - Lululemon Athletica has seen its stock rise 400% over the last decade but has been flat recently; however, it is projected to nearly triple its 2021 revenue by 2026 [8] - The company has a loyal customer base, with stores generating over $1,600 in sales per square foot and e-commerce accounting for 39% of its business [9] - Revenue increased by 9% year over year in the first three quarters of last year, which, while below its historical growth rate, outperformed competitors like Nike [10] - Lululemon is expanding globally, with 26% of revenue coming from outside the Americas, and is diversifying into new categories [11] - The stock's forward P/E of 21 is considered attractive, with expectations for double-digit revenue and earnings growth in a stronger economy [12]

Group 1 - Daniel Martins is the founder of DM Martins Research, focusing on building efficient, replicable portfolios that balance growth with reduced downside risk [1] - DM Martins Capital Management LLC, founded by Daniel, employs a macro strategy hedge fund approach using leveraged risk-parity and return stacking for long-term capital appreciation [1] - Daniel has extensive experience in equity research, having worked at FBR Capital Markets, Telsey Advisory, and Bridgewater Associates, where he honed his investment management skills [1] Group 2 - DM Martins Research has collaborated with EPB Macro Research and Risk Research, Inc., enhancing its analytical capabilities [1] - Daniel also serves as an instructor for Wall Street Prep, training analysts at major investment banks and sovereign funds [1] - He holds an MBA in Financial Instruments and Markets from New York University's Stern School of Business, indicating a strong academic background in finance [1]

The latest trading session saw Lululemon (LULU) ending at $324.45, denoting a -1.55% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.33%.Shares of the athletic apparel maker have depreciated by 10.25% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 8.76% and the S&P 500's loss of 7.48%.The investment community will be paying close attention to the earni ...

Lululemon (LULU) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended January 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on March 27, 2025, might help the stock move higher if these key numbers are better than exp ...

Core Viewpoint - Lululemon's stock performance has lagged behind major indices, with a significant decline over the past month, while upcoming earnings are anticipated to show growth in both EPS and revenue [1][2]. Company Performance - Lululemon closed at $311.03, reflecting a +0.44% change from the previous day, which is below the S&P 500's gain of 2.13% on the same day [1]. - Over the past month, Lululemon shares have decreased by 20.77%, underperforming the Consumer Discretionary sector's loss of 12.53% and the S&P 500's loss of 9.57% [1]. Upcoming Earnings - The earnings report is scheduled for March 27, 2025, with projected EPS of $5.85, indicating a 10.59% increase year-over-year [2]. - Quarterly revenue is expected to reach $3.58 billion, representing an 11.68% increase from the same period last year [2]. Analyst Projections - Recent shifts in analyst projections for Lululemon are crucial for understanding near-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [3]. - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with stocks rated 1 historically yielding an average annual return of +25% since 1988 [4][5]. Valuation Metrics - Lululemon currently has a Forward P/E ratio of 20.16, which is higher than the industry average of 13.75, indicating a premium valuation [6]. - The company has a PEG ratio of 1.88, compared to the industry average of 1.65, suggesting that Lululemon's valuation is also influenced by its expected earnings growth rate [7]. Industry Context - The Textile - Apparel industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 65, placing it in the top 26% of over 250 industries [8].

Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and his affiliation with The Motley Fool, highlighting the company's recommendations and positions in Lululemon Athletica [1] Company Analysis - The Motley Fool has positions in and recommends Lululemon Athletica, indicating a positive outlook on the company's stock performance [1]

Group 1: Market Reaction - Shares of Nike Inc (NKE) and Lululemon Athletica Inc (LULU) are declining due to President Trump's imposition of tariffs, including a 25% tariff on Mexico and Canada and a 10% levy on China [1] - NKE is down 4.1%, trading at $73.76, and is on track to extend its 26.2% year-over-year deficit, marking its sixth consecutive loss [2] - LULU is down 2.9% at $402.07, deepening a 13.2% year-over-year deficit, and is set to end a six-day winning streak [4] Group 2: Technical Analysis - NKE attempted to reach $80 and its 126-day moving average but was rejected during a selloff [2] - LULU has shown a V-shaped rally since hitting a 12-month low of $226.01 on August 5 [4] - LULU's 20-day moving average appears to be supporting today's losses [4] Group 3: Options Activity - Short-term options traders for NKE are leaning bearish, indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.06, which is in the 96th percentile of annual readings [3] - For LULU, 2,925 puts have been traded, which is double the intraday average, with the most active being the weekly 2/7 405-strike put [5]

Company Overview - Lululemon (LULU) closed at $402.90, with a daily increase of +0.72%, outperforming the S&P 500's loss of 1.46% on the same day [1] - Over the past month, Lululemon shares have gained 3.46%, while the Consumer Discretionary sector increased by 0.19% and the S&P 500 by 1.08% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for Lululemon is projected at $5.82, indicating a 10.02% increase year-over-year [2] - Revenue is expected to reach $3.57 billion, reflecting an 11.49% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $14.36 per share, a +12.45% change from the previous year, with revenue estimated at $10.55 billion, showing a +9.66% increase [3] - Recent shifts in analyst projections are important, as positive revisions indicate optimism regarding the company's business and profitability [3] Stock Performance Metrics - The Zacks Rank system, which assesses estimate changes, currently ranks Lululemon at 2 (Buy), with a historical average annual return of +25% for 1 stocks since 1988 [5] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 1.35% [5] Valuation Metrics - Lululemon has a Forward P/E ratio of 27.86, which is a premium compared to the industry average of 16.18 [6] - The PEG ratio for Lululemon is currently 2.61, while the average PEG ratio for the Textile - Apparel industry is 1.89 [6] Industry Context - The Textile - Apparel industry is part of the Consumer Discretionary sector, holding a Zacks Industry Rank of 50, placing it in the top 20% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]