X
<

Could Lululemon Athletica Have Another Strong Quarter in 2Q17?

PART:
1 2 3 4 5
Could Lululemon Athletica Have Another Strong Quarter in 2Q17? PART 1 OF 5

Lululemon Athletica: What to Expect from Its 2Q17 Earnings

Lululemon Athletica’s 2Q17 earnings

Vancouver-based Lululemon Athletica (LULU) is slated to release its 2Q17 results on August 31, 2017.

Wall Street analysts expect a 7.9% YoY (year-over-year) fall in Lululemon’s 2Q17 earnings to $1.01 per share on total sales of $567 million (+10.3% YoY). The company delivered a solid first quarter and beat the consensus on both the top and bottom lines.

Lululemon Athletica: What to Expect from Its 2Q17 Earnings

Interested in COLM? Don't miss the next report.

Receive e-mail alerts for new research on COLM

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

In this series, we’ll discuss the company’s expected top and bottom line performances in the coming quarter.

Lululemon Athletica has a market capitalization of $8.18 billion as of August 23, 2017. ETF investors seeking to gain exposure to Lululemon can consider the PowerShares Russell Midcap Pure Growth Portfolio (PXMG), which invests 1.5% of its portfolio in the company.

Valuation update

Currently, Lululemon stock is trading at a one-year forward price-to-earnings ratio of 25.5x—compared to the three-year average of 28x.

In comparison, Under Armour (UAA) is trading at 44x, while Nike (NKE) and Columbia Sportswear (COLM) are trading at 22x and 19x, respectively.

The average 12-month price target from 35 analysts covering Lululemon is $61.97, which indicates an upside of ~3% over the next year.

We’ll discuss Lululemon’s valuations and earnings potential in Part 4 of this series. In Part 5, we’ll discuss analysts’ recommendations.

X

Please select a profession that best describes you: