Market Overview

3 Things To Listen For On Lululemon's Q1 Earnings Call

3 Things To Listen For On Lululemon's Q1 Earnings Call

Credit Suisse issued comments Friday regarding Lululemon Athletica inc. (NASDAQ: LULU)’s first-quarter earnings call, scheduled for June 1 at 5 p.m.

“We are concerned that recent weakness will not abate this quarter given evidence that markdown activity and SKU intensity continue to increase,” said analyst Christian Buss in a note.

Credit Suisse rates Lululemon Neutral with a price target of $56.

3 Things To Listen For

    1. The challenging and promotional retail environment Lululemon found itself in is unlikely to be offset by tailwinds from exposure to the athletic category. Buss predicts same-store sales will be down 1.5 percent in Q1, with negative comps continuing until Q3.
    2. Gross margin benefits from last year’s supply chain restructuring continue, but at a reduced pace compared the second half of fiscal 2016. The analyst models for 50 basis points year-over-year improvement to 48.7 percent of sales.
    3. “We have pushed out our leverage assumption for lululemon into FY18 as the company still expects occupancy costs, partially due to accelerated international store openings, to weigh on the FY17 SG&A rate,” said Buss. They model for 150 basis points deleverage in Q1.

Minutes before the closing bell Friday, shares of Lululemon were down 0.97 percent at $48.22.

Related Links:

Lululemon Higher After Report Citing Potential Private Equity Interest

Lululemon's Website Down For Roughly 24 Hours

Latest Ratings for LULU

Jul 2020BairdMaintainsOutperform
Jun 2020UBSMaintainsNeutral
Jun 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for LULU
View the Latest Analyst Ratings


Related Articles (LULU)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings News Guidance Previews Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

TYGB of A SecuritiesUpgrades
ZIONB of A SecuritiesMaintains39.0
RFB of A SecuritiesMaintains13.0
PNCB of A SecuritiesMaintains123.0
HBANB of A SecuritiesMaintains11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at