Lululemon (LULU) Surpasses Q1 Earnings and Revenue Estimates

Company Performance - Lululemon reported quarterly earnings of $2.60 per share, exceeding the Zacks Consensus Estimate of $2.59 per share, and showing an increase from $2.54 per share a year ago, representing an earnings surprise of 0.39% [1] - The company posted revenues of $2.37 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.59%, and up from $2.21 billion year-over-year [2] - Over the last four quarters, Lululemon has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Lululemon shares have declined approximately 12.4% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The current consensus EPS estimate for the upcoming quarter is $3.27 on revenues of $2.56 billion, and for the current fiscal year, it is $14.72 on revenues of $11.19 billion [7] Industry Context - The Textile - Apparel industry, to which Lululemon belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Lululemon's stock performance [5]