Cowen Remains Bullish on lululemon athletica (LULU) Following Strong 4Q Results
Cowen reiterated an Outperform rating and $66.00 price target on Lululemon Athletica Inc. (NASDAQ: LULU) following the company's 4Q earnings report. LULU reported 4Q EPS of $0.85, higher than the Street at $0.80, & vs. management's guidance of $0.78-$0.80. The result was driven by a higher-than-anticipated sales, a higher-than-expected gross margin rate, and a lower-than-modeled share count.
Analyst Oliver Chen commented, "We are encouraged with LULU's strong 4Q EPS beat of 85c vs. Street at 80c, w/GM declining only -113bp vs. Street's estimate of -220bp. Investor focus will likely be on 1Q guide below St. (EPS: 28-30c vs. St. 37c) & FY16 ($2.00-$2.15 vs. St. $2.15) - w/questions on margin performance throughout year, and cadence of comps & margin throughout FY16."
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Shares of Lululemon Athletica Inc. closed at $61.24 yesterday.