Lululemon Athletica, Inc. (NASDAQ: LULU)
LULU surged today on good news after the company announced better-than-expected earnings results. Shares received a boost after the company reported that fourth quarter 2015 ended with inventory levels up 36.5% after a strong holiday season. Investors.com The market reacted positively to the news as the stocked moved up to levels not seen in several months.
LULU CEO Comments
Laurent Potdevin, lululemon’s CEO, stated: “I’m very pleased with our strong finish to the year with positive momentum across all channels. Our Q4 results are a reflection of our ability to deliver a truly unique experience to our guests, led, as always, by our outstanding store educators.”
Mr. Potdevin continued: “In 2015, we made bold moves across the organization, elevating design and innovation and developing our infrastructure to position us for the future. As I look forward to 2016 and beyond, I am excited and confident that we have the right team in place to execute on our long term strategies.” lululemon
Technical Analysis
LULU jumped up 10.71% today to $67.80, a $6.56 increase from the previous days close. Looking at the chart, we see that it has been over nine months since it has traded in this range. Volume today surged to just under 1.5 million, 4.5 times its normal volume. If momentum and volume from the positive news continues, there is a real chance for the stock to continue its move upward.
Lululemon Athletica Inc. Recent Financials
Revenue increased 17% with earnings per share of $.085 on $704.3 million, also topping estimates of $693.4 million based on strong holiday sales. Revenue growth of 17% in the recent quarter was also the fastest growth the company has experienced in a quarter since 2013. The company has projected its revenue for the current year of $2.285-$2.335 billion, compared the analyst consensus at $2.33 billion. Management forecasts earnings per share to grow 10% to 15% to $2.05-$2.15. Motley Fool
Company Profile
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
