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Is Another Stellar Quarter Awaiting Lululemon Athletica?

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May. 29 2018, Updated 11:57 a.m. ET

Series snapshot

Lululemon Athletica (LULU) is slated to release its financial results for the first quarter on May 31. Wall Street is projecting a 44% YoY (year-over-year) improvement in Lululemon’s EPS to $0.46, and an 18.5% YoY improvement in its total sales to $616 million during the quarter. The company outperformed on both top and bottom lines in all four quarters last year. Later in this series, we’ll discuss the company’s recent financial performance and expectations for the coming quarter.

Thanks to its consistent financial performance and stable outlook, Lululemon stock has delivered excellent returns. Its stock price has risen ~120% over the past year. The company is currently trading close to its all-time high, and analysts do not see any upside left in the stock.

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About Lululemon Athletica

Lululemon Athletica designs and sells lifestyle athletic apparel for yoga and other fitness activities. It operates around 400 stores in the United States, Canada, New Zealand, Australia, Asia, and the United Kingdom.

With a market capitalization of $14.4 billion (as of May 25) and TTM (trailing-12-month) sales of $2.6 billion, Lululemon is a smaller player in the sportswear space. In comparison, industry leader Nike (NKE) has had TTM sales of $35.2 billion and a market cap of ~$115 billion. Investors seeking exposure to LULU could consider the PowerShares Russell Midcap Pure Growth Portfolio ETF (PXMG), which invests 2.1% of its portfolio in LULU.

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