Comment
0
Tweet
0
Print
RSS Feeds

It's Showtime for Lululemon Athletica

Monday - 3/18/2013, 4:26pm  ET

Lululemon Athletica is expected to report Q4 earnings on March 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lululemon Athletica's revenues will expand 29.6% and EPS will increase 45.1%.

The average estimate for revenue is $481.5 million. On the bottom line, the average EPS estimate is $0.74.

Revenue details
Last quarter, Lululemon Athletica reported revenue of $316.5 million. GAAP reported sales were 37% higher than the prior-year quarter's $230.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.39. GAAP EPS of $0.39 for Q3 were 44% higher than the prior-year quarter's $0.27 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 55.4%, 40 basis points worse than the prior-year quarter. Operating margin was 25.5%, 40 basis points worse than the prior-year quarter. Net margin was 18.1%, 120 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.37 billion. The average EPS estimate is $1.84.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,018 members out of 1,353 rating the stock outperform, and 335 members rating it underperform. Among 357 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 254 give Lululemon Athletica a green thumbs-up, and 103 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lululemon Athletica is outperform, with an average price target of $81.29.

Selling to fickle consumers is a tough business for Lululemon Athletica or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

This article was originally published as It's Showtime for Lululemon Athleticaon Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.