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Lululemon Athletica's Earnings: A Preview

Lululemon Athletica LULU is set to give its latest quarterly earnings report on Thursday, 2025-06-05. Here’s what investors need to know before the announcement.

Analysts estimate that Lululemon Athletica will report an earnings per share (EPS) of $2.69.

Anticipation surrounds Lululemon Athletica’s announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

The company’s EPS beat by $0.27 in the last quarter, leading to a 14.19% drop in the share price on the following day.

Here’s a look at Lululemon Athletica’s past performance and the resulting price change:

Quarter Q4 2024 Q3 2024 Q2 2024 Q1 2024
EPS Estimate 5.87 2.72 2.93 2.39
EPS Actual 6.14 2.87 3.15 2.54
Price Change % -14.000000000000002% 16.0% 0.0% 5.0%

Tracking Lululemon Athletica’s Stock Performance

Shares of Lululemon Athletica were trading at $334.91 as of June 03. Over the last 52-week period, shares are up 3.72%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts’ Perspectives on Lululemon Athletica

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Lululemon Athletica.

The consensus rating for Lululemon Athletica is Neutral, based on 31 analyst ratings. With an average one-year price target of $352.39, there’s a potential 5.22% upside.

Analyzing Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Amer Sports, Tapestry and Ralph Lauren, three major players in the industry, shedding light on their relative performance expectations and market positioning.

  • Analysts currently favor an Buy trajectory for Amer Sports, with an average 1-year price target of $35.2, suggesting a potential 89.49% downside.
  • Analysts currently favor an Outperform trajectory for Tapestry, with an average 1-year price target of $88.62, suggesting a potential 73.54% downside.
  • Analysts currently favor an Buy trajectory for Ralph Lauren, with an average 1-year price target of $298.16, suggesting a potential 10.97% downside.

Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Amer Sports, Tapestry and Ralph Lauren, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Lululemon Athletica Neutral 12.68% $2.18B 18.01%
Amer Sports Buy 23.48% $851.10M 2.63%
Tapestry Outperform 6.89% $1.21B 14.37%
Ralph Lauren Buy 8.25% $1.17B 5.03%

Key Takeaway:

Lululemon Athletica ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

About Lululemon Athletica

Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. The company offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. Lululemon also sells fitness accessories, such as bags, yoga mats, and equipment. It sells its products through digital channels, a small number of wholesale partners, more than 760 company-owned stores in about two dozen countries in North America, Asia, and Western Europe, and about 40 franchised locations in the Middle East. The company was founded in 1998 and is based in Vancouver, Canada.

Financial Milestones: Lululemon Athletica’s Journey

Market Capitalization: Exceeding industry standards, the company’s market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Lululemon Athletica showcased positive performance, achieving a revenue growth rate of 12.68% as of 31 January, 2025. This reflects a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Lululemon Athletica’s net margin excels beyond industry benchmarks, reaching 20.72%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Lululemon Athletica’s ROE stands out, surpassing industry averages. With an impressive ROE of 18.01%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Lululemon Athletica’s financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 10.19%, the company showcases efficient use of assets and strong financial health.

Debt Management: Lululemon Athletica’s debt-to-equity ratio is below the industry average. With a ratio of 0.36, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Lululemon Athletica visit their earnings calendar on our site.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.