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.
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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.
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.
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.