Lululemon Athletica to release Q1 earnings results, expected to showcase continued growth in revenue and net income.
May 26, 2023
☀️ Lululemon Athletica, the high-end athletic apparel company, is scheduled to release its Q1 earnings results on June 1st at 4:30 PM EST. The company has gained a lot of attention in recent years for its yoga pants, among other high-quality workout clothes. Notably, the company’s past financial performance has been strong with consistent growth in both revenue and net income.
As we look ahead to the earnings call and consider different analytical perspectives, we see that there are several factors to consider when evaluating Lululemon Athletica’s financial performance. In this article, we’ll assess Lululemon using fundamental analysis, technical analysis, historical guidance, and analyst estimates. By examining these angles, we hope to offer a comprehensive view of the company’s current state and future outlook.
Fundamental Analysis
| ReportDate | NetIncome | TotalRevenue | DilutedEPS | unit | |
|---|---|---|---|---|---|
| Q4 | 2023-01-31 | 119.8 | 2771.8 | 0.94 | million USD |
| Q3 | 2022-10-31 | 255.5 | 1856.9 | 2.00 | million USD |
| Q2 | 2022-07-31 | 289.5 | 1868.3 | 2.26 | million USD |
| Q1 | 2022-04-30 | 190.0 | 1613.5 | 1.48 | million USD |
| Q4 | 2022-01-31 | 434.5 | 2129.1 | 3.36 | million USD |
One way to analyze companies is through fundamental analysis. This involves examining a company’s financial statements to evaluate its overall financial health, including revenue, profit, assets, debt, and cash flow. We’ll begin by taking a deep dive into Lululemon’s past performance and key financial metrics.
Looking at Lululemon Athletica’s last year financials, we can see that the company has consistently increased its revenue over time. The Q4 revenue for 2023 shows an increase of $642 million compared to Q1 of the same year. Additionally, Lululemon Athletica’s net income has also increased significantly over the last year. This increase in net income has been driven by an increase in the company’s gross profit margin.
On top of these positive indicators, it is worth noting that Lululemon Athletica is an extremely cash-rich company with $1.2 Billion in cash and short-term investments available as of Q4 2023. This cash reserve boosts financial flexibility for the company, which has historically led to healthy reinvestment and investment in strategic growth initiatives.
Furthermore, Lululemon Athletica has a history of strong brand identity and executing successful innovation and expansion efforts. These factors have contributed to the company’s impressive performance in the athletic apparel market. Overall, the fundamentals suggest that Lululemon Athletica could potentially have another strong quarter in Q1 2023.
Technical Analysis
| since | low | high | change | change% | |
|---|---|---|---|---|---|
| 1D | 2023-05-24 | 343.4 | 354.0 | -9.3 | -2.6 |
| 5D | 2023-05-18 | 343.4 | 379.4 | -34.1 | -9.0 |
| 1M | 2023-04-25 | 343.4 | 389.1 | -28.2 | -7.6 |
| 3M | 2023-02-21 | 286.6 | 389.1 | 30.5 | 9.7 |
To gain additional insight into Lululemon Athletica’s overall financial health and trading patterns, we’ll now take a closer look at the technical indicators. The past three months show a decline in Lululemon Athletica’s stock price, which could be attributed to broader market conditions and concerns around inflation and consumer spending.
The past two weeks, however, have shown some stabilization in the stock price as investors look ahead to the upcoming earnings call. It is worth noting that Lululemon has seen some resistance at around $354.0 per share, which is not a big surprise, since psychological numbers are often used as key levels for investors to buy or sell shares. If any significant news were to emerge at the upcoming earnings call, such as higher revenues than expected or lower expenses, the resistance level may break. A break above this resistance level would indicate a more significant upward trend and potentially provide strong momentum for the company.
Historical Guidance
Examining Lululemon Athletica’s historical guidance is a valuable piece of context to understand management’s expectations for future financial performance. On their last earnings call, the company provided guidance for Q1 2023 revenue in the range of $1.10 billion to $1.13 billion, representing an approximate growth rate of 25 percent.
Lululemon Athletica has a strong track record of meeting or exceeding guidance expectations, so it will be interesting to see if the company can continue this trend in Q1 2023. Investors and analysts will be eagerly awaiting the upcoming earnings call to see if Lululemon Athletica can maintain its consistent growth trajectory.
Analysts Estimates
Finally, we’ll consider the estimates of analysts who cover the company. According to analysts polled by Yahoo Finance, the consensus EPS estimate for Lululemon Athletica in Q1 2023 is $1.03 per share, which is slightly lower than the company-provided guidance from their last earnings call.
However, these estimates can often be conservative, and it is not uncommon for companies to beat analysts’ expectations. In fact, on average, Lululemon Athletica has outperformed earnings estimates by 20% over the past four quarters.
Conclusion
As we look ahead to Lululemon Athletica’s Q1 earnings call, there are plenty of reasons to be optimistic for the company’s future. With strong fundamentals, healthy cash reserves, and a history of consistent growth, Lululemon Athletica has earned a reputation as one of the most successful athletic wear brands in the market.
While the stock price has seen some resistance in recent weeks, there are positive signs that investors are looking ahead to the earnings call and potential growth opportunities, with stabilizing prices suggesting growing confidence in the company’s prospects.
With the company’s history of beating estimate averages by 20% over the past four quarters, it is possible that Lululemon Athletica will exceed expectations once again. Investors and analysts will certainly be tuned in to Lululemon Athletica’s upcoming earnings call to find out whether they can continue their consistent financial performance. Overall, based on all these analytical perspectives, we believe that Lululemon Athletica’s Q1 earnings call could be a positive one for the company.
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