Da Davidson Provides Earnings Review on Lululemon Athletica (LULU), Sees FY11 Guidance Being Raised
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Price: $119.55 -0.01%
Rating Summary:
13 Buy, 34 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 34 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson is maintaining its Neutral rating and $100 price target on shares of Lululemon Athletica Inc. (NASDAQ: LULU) ahead of its Q1 earnings.
The company is expected to release its Q1 results on June 10 before the market opens.
The firm forecasts comps of 13.4 percent, $181 million in revenue, and EPS of $0.39, which is above the Street's estimates of 12.6 percent, $180.1 million, and $0.38. The company's Q1 guidance calls for comps to be in the low double digits, revenue to between $175-$180 million, and EPS of $0.36-$0.38.
DA Davidson notes that its estimate assumes modest gross margin expansion of 53bp to 54.3% and 33% year-over-year SG&A growth resulting in flat operating margins at 23.5%.
Following recent checks at stores, the firm does not believe that inventory disruptions will have any negative effect on the company's sales.
DA Davidson expects LULU to raise its FY11 guidance which now calls for revenue of $885-$900 million and EPS of $1.90-$2.00. It anticipates that investors will concentrate on incremental commentary regarding product cost pressures and margin expansion prospects.
For more ratings news on Lululemon Athletica Inc. click here and for the rating history of Lululemon Athletica Inc. click here.
Shares of Lululemon Athletica Inc. closed at $84.34 yesterday.
The company is expected to release its Q1 results on June 10 before the market opens.
The firm forecasts comps of 13.4 percent, $181 million in revenue, and EPS of $0.39, which is above the Street's estimates of 12.6 percent, $180.1 million, and $0.38. The company's Q1 guidance calls for comps to be in the low double digits, revenue to between $175-$180 million, and EPS of $0.36-$0.38.
DA Davidson notes that its estimate assumes modest gross margin expansion of 53bp to 54.3% and 33% year-over-year SG&A growth resulting in flat operating margins at 23.5%.
Following recent checks at stores, the firm does not believe that inventory disruptions will have any negative effect on the company's sales.
DA Davidson expects LULU to raise its FY11 guidance which now calls for revenue of $885-$900 million and EPS of $1.90-$2.00. It anticipates that investors will concentrate on incremental commentary regarding product cost pressures and margin expansion prospects.
For more ratings news on Lululemon Athletica Inc. click here and for the rating history of Lululemon Athletica Inc. click here.
Shares of Lululemon Athletica Inc. closed at $84.34 yesterday.
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