Lululemon Stock Stretches Toward High on Earnings

Lululemon Athletica Inc. makes iconic athletic apparel and accessories, including the forever popular yoga pants. Staying in shape has been a theme in recent quarters as a growing economy and higher-paying jobs have men and woman flocking to fitness centers. Lululemon is set to report earnings results after the closing bell on Tuesday, March 27.

The stock closed Monday, March 26, at $80.34, up 2.2% year to date and up 7.3% since setting its 2018 low of $74.90 on Feb. 6. The stock is 4.3% below its all-time intraday high of $83.98 set on March 6.

Analysts expect Lululemon to report earnings per share of $1.27 to $1.30 when it releases results on Tuesday. The company is expected to continue its growing sales pace, but recent slower retail sales numbers could result in a negative reaction to earnings given the possibility that Lululemon’s weekly chart could be downgraded to negative this week. (See also: Lululemon: A Hot Stock in Yoga Pants.)

 

Athletic apparel provider Lululemon has an elevated P/E ratio of 39.56 and faces a negative weekly chart on a negative reaction to earnings. …read more

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Category: LULU

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