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.
LULU in +17.39% Uptrend, rising for three consecutive days on December 09, 2024
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 of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 02, 2024. You may want to consider a long position or call options on LULU as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LULU just turned positive on December 03, 2024. Looking at past instances where LULU's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 283 cases where LULU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 of 62 cases within the following month. The odds of a continued downward trend are .
LULU broke above its upper Bollinger Band on December 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LULU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Valuation Rating of (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: LULU's P/B Ratio (11.468) is slightly higher than the industry average of (3.904). P/E Ratio (31.575) is within average values for comparable stocks, (108.527). Projected Growth (PEG Ratio) (1.450) is also within normal values, averaging (1.444). LULU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). LULU's P/S Ratio (5.089) is very high in comparison to the industry average of (1.118).
The Tickeron PE Growth Rating for this company is (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.
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General Information
a retailer of athletic apparels
Industry ApparelFootwearRetail