Lululemon Athletica Beats on Earnings and Revenues in Fiscal 3Q16


Dec. 12 2016, Published 3:22 p.m. ET

Series snapshot

Lululemon Athletica (LULU) reported its fiscal 3Q16 results after the market closed on Wednesday, December 7, 2016. The company’s fiscal 3Q16 results relate to the three-month period ended October 30, 2016. The Vancouver-based “athleisurewear” retailer reported a strong quarter, outdoing Wall Street revenues as well as earnings estimates.

Lululemon’s fiscal 3Q16 earnings per share rose a whopping 34% YoY (year-over-year) to $0.47 per share, beating the consensus by $0.04. Its revenues rose 13% to $544.4 million, topping Wall Street estimates of $540 million.

Lululemon stock soared 21% the day after its earnings release, and it finally closed at $68.84, 15% above the previous day’s closing price.

Currently, LULU has YTD (year-to-date) gains of 31%, outdoing all its close competitors. While Columbia Sportswear (COLM) is up 30% YTD, Under Armour (UA) and Nike (NKE) have YTD losses of 21% and 18%, respectively.

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About Lululemon Athletica

Lululemon Athletica (LULU) designs and sells healthy lifestyle athletic apparel inspired by yoga and other fitness activities. It primarily operates under the Lululemon and Ivivva brand names.

The company opened its first store in 2000 in Vancouver, BC. Since then, LULU has expanded to 379 stores[1. on July 31, 2016] in the US, Canada, Australia, New Zealand, and the United Kingdom.

The company had a market capitalization of $9.4 billion on December 8, 2016. Competitors Nike and Under Armour are much larger, with market caps of $85.6 billion and $13.6 billion, respectively.

ETF investors seeking to add exposure to LULU can consider the iShares Edge MSCI Multifactor Consumer Discretionary ETF (CNDF), which invests 1.4% of its portfolio in LULU.

Series overview

In this series, we’ll give you an overview of Lululemon’s fiscal 3Q16 performance and results. We’ll also briefly touch on the company’s current valuation, its stock market performance, and Wall Street analysts’ recommendations. In the next article, we’ll look at Lululemon’s comps and top line.


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