lululemon(US:LULU) Kiplinger.com·2024-08-30 15:16Core Viewpoint - Lululemon Athletica reported mixed second-quarter results, leading to a decrease in stock price and a lowered full-year outlook [1][3]. Financial Performance - For the quarter ended July 28, Lululemon's revenue rose 7.3% year-over-year to $2.37 billion, with international sales increasing by 29% [1]. - Earnings per share (EPS) increased by 17.5% from the previous year to $3.15 [1]. - Analysts had expected revenue of $2.41 billion and EPS of $2.93, indicating a shortfall in expectations [3]. Outlook Adjustments - Due to "uncertainties in the macro environment," Lululemon revised its full-year revenue forecast to between $10.375 billion and $10.475 billion, down from a previous estimate of $10.7 billion to $10.8 billion [3]. - The company now anticipates EPS in the range of $13.95 to $14.15, lowered from $14.27 to $14.47 [3]. Future Guidance - For the third quarter, Lululemon projects revenue between $2.34 billion and $2.365 billion, with EPS expected to be in the range of $2.68 to $2.73 [4]. Market Performance and Analyst Sentiment - Lululemon's stock has underperformed in 2024, down 50% year-to-date compared to the S&P 500's 18% gain [5]. - Despite this, analysts remain optimistic, with an average target price of $322.20, suggesting an upside of over 25% [5]. - Stifel has a bullish outlook with a Buy rating and a price target of $370, citing Lululemon's unique positioning for growth and underappreciated international contributions [5].