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Mar 28, 2019
Lululemon’s (LULU, $168.30) ventures into menswear segment to drive growth

Lululemon’s (LULU, $168.30) ventures into menswear segment to drive growth

Shares of Lululemon soared more than 10% after the company disclosed its estimate beating fiscal fourth quarter earnings on Wednesday. Earnings per share came at $1.85 per share versus estimated $1.74 per share; revenue came at $1.17 billion versus and estimated $1.15 billion; and same store sales rose 16% in line with estimates. The quarter ending in February, net income rose to $218.5 million, or $1.65 per share, from $119.8 million, or 88 cents per share. Strong sales during the holiday quarter helped in a revenue rise of $1.17 billion from $928 million in the year-ago quarter. Achieved a operating margin of 21.5% during the quarter, two years ahead of schedule.

But the most exciting news for the quarter was its foray into the men’s wear segment proved to be highly successful.

The company, which so far specialised in women wear, disclosed that its recent foray into men’s apparel has been the most exciting segment for the year. And with just 20% market penetration, it is expected to be one of major growth driver for the company in years to come. Specifically, the men’s “bottoms” segment has been extremely profitable. To further enhance its brand presence, the company also recently announced former Philadelphia Eagles Superbowl quarterback Nick Foles as the brand’s first men’s ambassador.

Keeping women’s business at the core, the company also plans to widen its offering by focusing on some of the other segments within the apparel industry like office, travel, commute, outerwear and bras along with developing gear for the warm weather runs.

Related Ticker: LULU

LULU in +3.19% Uptrend, growing for three consecutive days on September 03, 2026

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where LULU advanced for three days, in 209 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

LULU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LULU as a result. In 61 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.

The Moving Average Convergence Divergence Histogram (MACD) for LULU turned negative on September 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 34 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.

LULU moved below its 50-day moving average on September 04, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for LULU crossed bearishly below the 50-day moving average on September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where LULU declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.

The Aroon Indicator for LULU entered a downward trend on September 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is 33 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. LULU’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.287) is normal, around the industry mean (3.079). P/E Ratio (8.146) is within average values for comparable stocks, (22.036). Projected Growth (PEG Ratio) (0.996) is also within normal values, averaging (1.639). LULU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (1.035) is also within normal values, averaging (0.680).

The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LULU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.

Notable companies

The most notable companies in this group are TJX Companies (NYSE:TJX), lululemon athletica (NASDAQ:LULU), Gap Inc (The) (NYSE:GAP), Abercrombie & Fitch Co (NYSE:ANF), Stitch Fix (NASDAQ:SFIX).

Industry description

Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.

Market Cap

The average market capitalization across the Apparel/Footwear Retail Industry is 8.39B. The market cap for tickers in the group ranges from 256K to 179.95B. IDEXY holds the highest valuation in this group at 179.95B. The lowest valued company is DESTQ at 256K.

High and low price notable news

The average weekly price growth across all stocks in the Apparel/Footwear Retail Industry was -3%. For the same Industry, the average monthly price growth was -12%, and the average quarterly price growth was 3%. DBGI experienced the highest price growth at 87%, while RENT experienced the biggest fall at -28%.

Volume

The average weekly volume growth across all stocks in the Apparel/Footwear Retail Industry was 38%. For the same stocks of the Industry, the average monthly volume growth was 207% and the average quarterly volume growth was 90%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 59
Price Growth Rating: 63
SMR Rating: 65
Profit Risk Rating: 89
Seasonality Score: -22 (-100 ... +100)
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published General Information

General Information

a retailer of athletic apparels

Industry ApparelFootwearRetail

Profile
Details
Industry
Apparel Or Footwear Retail
Address
1818 Cornwall Avenue
Phone
+1 604 732-6124
Employees
39000
Web
https://www.lululemon.com
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