Lululemon athletics today
(as of 11:51 AM ET)
- 52-week range
- $226.01
▼
$516.39
- P/E ratio
- 31.44
- Price target
- $372.61
Lululemon NASDAQ: LULU Continue to face such headwinds Other retailersBut its Q3 results prove the sustainability of the business and the strength of its growth rate. Highlights of the report and market reactions have analysts very happy with the news. Although one outlier calls for a sell on the stock, the rest of the data is bullish, with 19 of 19 price target revisions rising, including one nastier.
Where do analysts see this stock heading? After excluding the high and low, the average of 17 analysts is $401, with 70% of targets, including a high of $440, above consensus. The takeaway is that analysts see the stock advancing 15% to 20% over the next twelve months, and Feeling trends is upwards; Analysts will likely continue to widen the target range as the year progresses.
Lululemon’s strong and flexible business delivers results
Lululemon was A strong quarterDouble the retail industry average with top-line growth of 9% and beating MarketBeat’s reported consensus by 170 basis points. A global comp of 4% strength, 3% on an FX-neutral basis, offset weaker results in the US with international strength. Revenue in the US rose 2%, with new stores offsetting a 2% decline in comps. International segment sales grew by 30% FXN on a 22% comp store gain and are expected to remain strong and moderate growth in 2025.
Margin news is another area of strength. The company expanded its gross and operating margins, 40 basis points at the gross level and 70 at the operating level, to deliver beneficial bottom-line results. Diluted earnings of $2.87 adjusted 13% for the extra week and beat consensus by $0.15, with margins expected to remain strong as the year progresses.
Guidance for Q4 and the fiscal year was revised up due to the strengths of Q3 and Retail trendsKeeping Q4 growth target steady at 8% to 10% and both Q4 and fiscal year targets above analyst consensus forecasts.
Among the critical details is cash flow. The company is growing and improving the quality of its cash flow, which allows it to aggressively repurchase shares while maintaining a solid balance sheet and business health. At the end of the quarter, balance sheet highlights included increased cash compared to last year, an 8% increase in inventory, and current and total assets. Liabilities are also higher but offset by asset gains, leaving equity at 13%.
Regarding repurchases, buyback activity decreased 3% year-over-year, 1.5% YTD, and is expected to continue at Q4 and Q3 pace in 2025. The board increased the authorization by $1 billion to keep the total available at $1.8 billion, enough for four quarters at the current pace.
Lululemon stock price reaches an inflection point
Lululemon Athletica stock forecast today
$353.74
Up 2.59%buy medium
Based on 30 analyst ratings
| High forecast | $540.00 |
|---|---|
| Average forecast | $353.74 |
| Less predictable | $220.00 |
Lululemon’s stock price action has been brisk since the release, but there are obstacles in the market. Price action extended to around $375, aligning with a potentially strong resistance point at the middle of a multi-year trading and consolidation range. Because of the gap created by the action, the market may pull back from this level before going higher. The market could return to the previous session’s open near $345 in that scenario.
However, strong upward movement and analysts may be the answer Provide enough speed For this market to go higher without a price pullback. A critical resistance target is near $375 and could be broken soon. In that scenario, the market will face another hurdle near $400, likely below $375 and easily crossed, the high end of the analyst range and then the high of the long-term trading range. At the end will open a large trick door. .
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