Lululemon (LULU) Q4 Viewed as Bump in the Road, Not Disaster - Analyst
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Price: $364.68 +0.80%
Rating Summary:
32 Buy, 11 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
32 Buy, 11 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Topeka Capital maintained a Buy rating on Lululemon Athletica Inc. (NASDAQ: LULU) with a price target of $70.00. Comments follow disappointing Q4 guidance. Analyst Dorothy S. Lakner said results weren't "disastrous."
"We knew there were likely to be bumps in the road when we initiated and would be buyers on weakness in LULU shares today," said Lakner. "While LULU was in line with its previous guidance at the end of December--a difficult month for most retailers--January seems to have been more difficult, with traffic and sales trends decelerating meaningfully. This surprised us, given a store check this past weekend where LULU seemed very crowded with shoppers making purchases, perhaps even more so than in December, with most product at full price."
"Sales are now projected at $513-$518M, down from the prior $530-$540M, with EPS guidance down to $0.71-$0.73 from the previous $0.78-$0.79. As a result, our model is under review. That said, while disappointing, it doesn't appear to be disastrous, especially after the results we saw from many other retailers last week," added the analyst.
Lakner expects comments from management tomorrow at the ICR Xchange conference in Orlando.
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 $59.60 yesterday.
"We knew there were likely to be bumps in the road when we initiated and would be buyers on weakness in LULU shares today," said Lakner. "While LULU was in line with its previous guidance at the end of December--a difficult month for most retailers--January seems to have been more difficult, with traffic and sales trends decelerating meaningfully. This surprised us, given a store check this past weekend where LULU seemed very crowded with shoppers making purchases, perhaps even more so than in December, with most product at full price."
"Sales are now projected at $513-$518M, down from the prior $530-$540M, with EPS guidance down to $0.71-$0.73 from the previous $0.78-$0.79. As a result, our model is under review. That said, while disappointing, it doesn't appear to be disastrous, especially after the results we saw from many other retailers last week," added the analyst.
Lakner expects comments from management tomorrow at the ICR Xchange conference in Orlando.
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 $59.60 yesterday.
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