lululemon athletica's Q1 2025 Earnings: What to Expect
With a market cap of $32.7 billion, lululemon athletica inc. (LULU) designs, manufactures, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand. The company sells its products through company-operated stores, e-commerce, outlets, pop-ups, university retailers, and fitness studios, and it has a Like New re-commerce program across North America, Asia, and internationally.
The Vancouver, Canada-based company is expected to announce its fiscal Q1 2025 earnings results on Wednesday, June 4. Ahead of this event, analysts expect lululemon athletica to report an EPS of $2.58, up 1.6% from $2.54 in the year-ago quarter. It has surpassed Wall Street's earnings estimates in the last four quarters.
For fiscal 2025, analysts expect the athletic apparel maker to report an EPS of $14.77, up marginally from $14.64 in fiscal 2024. Moreover, EPS is anticipated to grow 11.1% year-over-year to $16.41 in fiscal 2026.
Shares of LULU have declined 25.5% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 8.7% gain and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 10.6% return over the period.
Despite reporting a stronger-than-expected Q4 2024 EPS of $6.14 and revenue of $3.6 billion on Mar. 27, Lululemon shares plunged 14.2% due to weak forward guidance and macroeconomic concerns. Management revealed that without the benefit of an extra week in Q4, revenue growth would have been only 8%, and it projected Q1 2025 growth of just 6% - 7%. Full-year 2025 revenue guidance of $11.2 billion - $11.3 billion came in below analysts’ expectations.
Additionally, flat U.S. comparable store sales and management's comments about reduced consumer spending and slower U.S. traffic due to inflation heightened investor concerns.
Analysts' consensus view on lululemon athletica’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 31 analysts covering the stock, 15 recommend "Strong Buy," two suggest "Moderate Buy," 11 indicate “Hold,” one advises "Moderate Sell," and two give "Strong Sell." As of writing, LULU is trading below the average analyst price target of $350.13.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
① During the campaign period, US stocks, US stocks short selling, US stock options, Hong Kong stocks, and A-shares trading will maintain at $0 commission, and no subscription/redemption fees for mutual fund transactions. $0 fee offer has a time limit, until further notice. For more information, please visit: https://www.webull.hk/pricing
Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.
English