Lululemon Athletica Inc. (NASDAQ: LULU)
Lululemon Athletica Inc. (LULU), an athletic apparel and accessories company yesterday announced that they have increased their earnings and revenue guidance numbers for the fiscal 2015 fourth quarter. Fourth quarter revenues were in a range between $690 million and $695 million up from previous expected range of $670 and $685 million. Earnings per share numbers were in a range of $0.78 and $0.80 up from previous expected range of $0.75 and $0.78.
Lululemon Athletica Inc. CEO’s Comments
“We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks. Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance. We are looking forward to 2016 and will enter the year with a very strong leadership team across the company that is relentlessly driving our strategic priorities and long term vision,” said Laurent Potdevin, CEO of lululemon athletica. Business Wire
LULU Technical Analysis
LULU gapped up in price yesterday to $59.92, up from the prior day’s close of $54.73, which is a 9% increase in price. Taking a look at the daily chart, we can see the last time LULU traded above this price level was on September 9th when it traded at $64.05. Taking a closer look at the daily chart we can see that LULU had a big drop back on September 8th when the stock was trading at $65.89, two days later it was trading at $53.54, equivalent to a 19% drop in price. Since then LULU has been in a trading range in between $45 and $55. The gap up has shot through the top end of the range, and I now would be looking at $55 as a new support level for this move up. LULU has a float of 108.41 million shares and is trading aright at the normal daily trading volume. LULU did reach premarket highs of $60.20, but gave back $0.28 at the open. For trading purposes, my entry point would have been $60 looking for a run to $60.50. My stop loss would have been $59.80, fearing anything below that and the stock would start to fill in the gap up.
lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates through two segments, Corporate-Owned Stores and Direct To Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle activities and athletic pursuits, such as yoga, running, and general fitness; and dance-inspired apparel for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats, and water bottles. The company sells its products through a chain of corporate-owned and operated retail stores; a network of wholesale channel, such as yoga studios, health clubs, and fitness centers; and outlets and warehouse sales, as well as directly to consumer through lululemon.com and ivivva.com e-commerce sites, and showrooms. As of February 1, 2015, it operated 302 corporate-owned stores under the lululemon athletica and ivivva athletica brand names in the United States, Canada, Australia, New Zealand, the United Kingdom, and Singapore. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada. Yahoo Finance