The 10-second takeaway
For the quarter ended May 5 (Q1), Lululemon Athletica beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share stayed the same.
Margins contracted across the board.
Lululemon Athletica recorded revenue of $345.8 million. The 24 analysts polled by S&P Capital IQ hoped for revenue of $341.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $285.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.32 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.4%, 560 basis points worse than the prior-year quarter. Operating margin was 19.1%, 650 basis points worse than the prior-year quarter. Net margin was 13.7%, 260 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $344.1 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.67 billion. The average EPS estimate is $2.00.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,038 members out of 1,369 rating the stock outperform, and 331 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 268 give Lululemon Athletica a green thumbs-up, and 94 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lululemon Athletica is outperform, with an average price target of $73.20.
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