DA Davidson Comments on Lululemon Athletica (LULU) Ahead of Earnings, Expects Strong Business Momentum
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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 $61 price target on shares of Lululemon Athletica Inc. (NASDAQ: LULU) ahead of its earnings call on September 9 at 9:00 am ET.
The firm is forecasting comps of 17 percent, total revenue of $205.3 million, and earnings per share of $0.22 for the quarter, all roughly inline with the consensus. DA Davidson is also estimating gross margin growth of 124 bps to 54 percent with 34 percent year-over-year SG&A growth. As a result, operating margin should increase 177 bps to 24.3 percent.
DA Davidson believes LULU will increase its full year guidance, but notes that investors will be focusing on product cost pressures and margin expansion prospects. To go inline with the stocks current valuation, margins much show signs of growth for shares to increase.
It will be interesting to see how the company's high-end consumer base is holding up in the tough economic times.
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 $54.11 yesterday.
The firm is forecasting comps of 17 percent, total revenue of $205.3 million, and earnings per share of $0.22 for the quarter, all roughly inline with the consensus. DA Davidson is also estimating gross margin growth of 124 bps to 54 percent with 34 percent year-over-year SG&A growth. As a result, operating margin should increase 177 bps to 24.3 percent.
DA Davidson believes LULU will increase its full year guidance, but notes that investors will be focusing on product cost pressures and margin expansion prospects. To go inline with the stocks current valuation, margins much show signs of growth for shares to increase.
It will be interesting to see how the company's high-end consumer base is holding up in the tough economic times.
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 $54.11 yesterday.
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