Auriga Maintains a 'Buy' on Lululemon Athletica Inc. (LULU); Q4 Review

Auriga maintains a 'Buy' on Lululemon Athletica Inc. (NASDAQ: LULU) price target of $86.00.

Analyst, Claire Gallacher, said, "LULU reported EPS of $0.51 vs consensus of $0.49. The represents growth of +34%. Upwardly revised guidance was $0.47-0.49. Comps increased 26% compared with guidance of low to mid twenties %. Revenue increased 51%, to $371mm. This compares with consensus of $360mm. Guidance was $358-363mm. Gross margins were 56.3% versus consensus of 56.6%...Inventory increased 81%; we expected inventory to increase at a faster rate than sales given the under-inventoried position of the company in 4Q10."

"Q1 Guidance Better Than Expected Revenue; Inline EPS. Revenue of $265-270mm. Consensus stands at $256mm. Comps of low twenties. Consensus is +17%. EPS of $0.28-0.29. Consensus is $0.29. 2012 Guidance-Revenue of $1.30-1.325 billion. Consensus stands at $1.30 billion. EPS of $1.50-1.57. Consensus is $1.60 and our estimate is $1.58. We believe management typically is conservative with its EPS guidance and upside to guidance is likely."

For an analyst ratings summary and ratings history on Lululemon Athletica Inc. click here. For more ratings news on Lululemon Athletica Inc. click here.

Shares of Lululemon Athletica Inc. closed at $74.07 yesterday.

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