Wells Fargo First Take on Lululemon Athletica LULU) Q4 and Guidance

Lululemon Athletica Inc. (NASDAQ: LULU) shares are on watch ahead of its 9am conference call. Analyst Paul Lejuez of Wells Fargo commented on the quarter.

"The quarter was slightly better than what the company preannounced in mid-January, though guidance is weak. After achieving a +4% comp including Ecom in Q4, management is guiding Q1 comps including Ecom to flat (which implies down msd at the store level) and for the full year of up low to mid single digits (implying flat to slightly down at the store level). The company still seems in the midst of its struggles and the new CEO, whose first earnings call is today, has termed 2014 an "investment year," said Lejuez.

"What to listen for on the call: (1) More details on progress related to execution/sourcing issues, (2) Merch margin performance in Q4 and expectations for 2014, (3) Q4 trends by month, (4) Canada vs. U.S. performance, (5) Any changes in store growth plans with new CEO, and (6) Expectations from new CEO about additional investments the company may need to make," he added.

Wells Fargo has a Market Perform rating on Lululemon Athletica Inc. with a price target of $53.00

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 $48.23 yesterday.

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