Lululemon Athletica Inc. has seen a steady increase in its stock price over the years. As of our last update, the stock has reached an all-time high.
The company's strong brand recognition and loyal customer base have contributed to its success. Lululemon's focus on high-quality yoga pants and other athletic apparel has helped it stand out in a crowded market.
In recent years, Lululemon has expanded its product line to include more casual wear and accessories. This move has helped the company appeal to a wider range of customers and increase its revenue.
Lululemon's stock has received positive ratings from analysts, with many giving it a "buy" or "outperform" recommendation.
Financial Analysis
Lululemon Athletica's revenue in 2023 was a whopping $9.62 billion, a 18.60% increase from the previous year.
The company's earnings were $1.55 billion, a significant jump of 81.35% from the previous year. This is a clear indication of Lululemon's growing popularity and financial stability.
According to 29 analysts, the average rating for LULU stock is "Buy." This is a strong endorsement of the company's potential for growth.
The 12-month stock price forecast is $391.04, which is an increase of 3.40% from the latest price. This suggests that investors are optimistic about Lululemon's future performance.
Here's a breakdown of Lululemon's current assets:
Lululemon's balance sheet is strong, with a total of $3.6 billion in current assets and $3.5 billion in non-current assets.
The company's current liabilities are $1.8 billion, which is a manageable amount considering its revenue and earnings.
Lululemon's average 1-year price target is $403.767 USD, with a low forecast of $195.94 USD and a high forecast of $509.25 USD.
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Company Performance
Lululemon Athletica's revenue in 2023 was a whopping $9.62 billion, a 18.60% increase from the previous year.
The company's financial performance has been impressive, with earnings increasing by 81.35% to $1.55 billion.
In the third quarter, Lululemon's earnings per share (EPS) rose by 46.4% year-over-year, exceeding expectations and driving a 16% stock rally.
Here's a breakdown of the company's earnings waterfall:
Lululemon's strong performance has led to a significant increase in its stock price, with a 1-month performance of +25.85 (+6.68%) since December 27, 2024.
Market Impact
Lululemon's stock price rocketed higher after the company beat third-quarter earnings estimates, with shares soaring on a bright holiday outlook.
Major U.S. equities indexes were mixed as markets wrapped up the first week of December.
Analysts are bullish on Lululemon stock, with many weighing in with bullish price targets after the company's earnings beat.
Lululemon shares have jumped to the top of the S&P 500 after the athletic apparel retailer's beat-and-raise quarter.
The company's strong earnings report was a major driver of the stock's surge, with investors responding positively to the news.
Lululemon's stock is soaring Friday after the athletic apparel retailer's beat-and-raise quarter.
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Challenges and Concerns
Lululemon's domestic market is facing challenges despite its global success.
The company's third quarter of 2024 performance showed a contrast between its domestic and international markets, with international growth being particularly impressive.
Lululemon's stock price slid 2.8% after analyst firm Jefferies recommended that investors sell the company's shares.
Longtime Bear Still Advising Sell
One of the most notable challenges facing Lululemon Athletica Inc. is the advice of a longtime bear, an analyst firm that's been telling investors to sell the stock for some time. This bear's stance is still unchanged despite the company's recent valuation peak.
Lululemon's stock price took a hit of 2.8% on Thursday, following Jefferies' recommendation to sell shares. It's clear that investor confidence in the company is still wavering.
The analyst firm's continued sell advice is a significant concern for Lululemon, as it may impact the company's ability to attract new investors and maintain its current market value.
Facing Domestic Market Challenges
Lululemon faces challenges in its domestic market, despite its global success.
The company's performance in the third quarter of 2024 was marked by an interesting contrast between its domestic and international markets.
While Lululemon saw impressive global growth, especially in international markets, its domestic market faced challenges.
This contrast highlights the unique challenges that Lululemon faces in its home market.
Despite its global success, Lululemon's domestic market is not immune to challenges.
The company's domestic market challenges are a notable exception to its otherwise strong global performance.
Forecast and Growth
Lululemon's stock quote is looking strong, especially when it comes to analyst forecasts. The average rating for LULU stock is "Buy" according to 29 analysts.
Analysts are predicting a 12-month stock price forecast of $391.04, which is an increase of 3.40% from the latest price. This suggests a steady growth trajectory for the company.
The company's Q3 performance exceeded expectations, with EPS up 46.4% y/y and gross margins expanding by 150 bps. This drove a 16% stock rally, showing the positive impact of the company's growth on its stock price.
Lululemon's CEO is optimistic about the company's growth prospects, citing a "long runway of growth" in the Americas. This is reflected in the company's raised full-year revenue forecast.
The company's growth is not just limited to its revenue, but also its profitability. Its 3-year EBITDA growth rate is 37%, indicating a strong increase in its earnings before interest, taxes, depreciation, and amortization.
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Here's a breakdown of Lululemon's growth rates over the past 3 years:
Analysts are also increasing their price forecast for Lululemon, with some predicting a 10.78% growth rate over the next year. This is a positive sign for the company's stock price.
Frequently Asked Questions
What stock exchange is LULU traded on?
LULU is traded on the NASDAQ stock exchange. Specifically, it's listed under the ticker symbol LULU: NASDAQ.
How much is lululemon worth now?
As of December 30, 2024, Lululemon Athletica's market cap is $46.77 billion. However, its value has decreased by 23.43% over the past year.
Is investing in lululemon a good idea?
Investing in lululemon may be a good idea due to its long-term growth potential, particularly in the men's category and internationally. However, investors should be aware of current challenges, including inflation and slowing revenue growth in North America.
How to buy Lululemon shares?
To buy Lululemon shares, search for LULU, go to its page, and place an order using the 'Buy' button. Choose your order type to initiate the trade, which will execute immediately or when a set price is reached.
How to invest in lululemon stock?
To invest in LULU stock, sign up for a brokerage account on Public and add funds to your account. From there, you can easily invest in LULU stock and manage your investments in one place.
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