Lululemon (LULU) Tops Q4 Expectations

Lululemon Athletica Inc. (LULU) shares are down $1.56, or 2.56%, to $57.58 in pre-market trading Thursday after the company reported its fourth quarter earnings results.

The yogawear chain reported earnings of $0.78 per share on revenues of $602.5 million, up 15.6% from a year ago. Analysts were expecting EPS of $0.73 on revenues of $599.79 million. Net profit for the quarter ended Feb. 1 rose to $110.9 million, or $0.78 per share, from $109.7 million, or $0.75/shr. from the corresponding period in 2013.

For the full fiscal year 2014, the company said net revenue was $1.8 billion from $1.6 billion in fiscal 2013, an increase of 13%.

For Q1/15, LULU provided EPS guidance of $0.31 – $0.33 versus consensus of $0.39 per share. The company also issued revenue projection of $413 – $418 million, compared to the consensus revenue estimate of $441.38 million. Meanwhile, total comparable sales, which includes same-store and online sales, are expected to increase in the “low single digits”.

For the full fiscal 2015, the company said EPS will be in the $1.85 – $1.90 range on net revs of $1.97 billion to $2.02 billion.

On valuation measures, Lululemon Athletica Inc. shares, which currently have an average 3-month trading volume of 1.64 million shares, trade at a trailing-12 P/E of 37.33, a forward P/E of 29.59 and a P/E to growth ratio of 2.03. The median Wall Street price target on the name is $68.00 with a high target of $85.00. Currently ticker boasts 15 ‘Buy’ endorsements, compared to 17 ’Holds’ and 2 ‘Sell’.

Profitability-wise, LULU has a t-12 profit and operating margin of 13.86% and 21.74%, respectively. The $8.66 billion market cap company reported $664.5 million in cash in its most recent quarter. That compares to $698.6 million at the end of fiscal 2013.

LULU currently prints a one year return of about 27% and a year-to-date return of 9.27%.

The chart below shows where the equity has traded over the last 52 weeks.

Lululemon Athletica Inc. designs, manufactures, and distributes athletic apparel. The company was founded in 1998 and is based in Vancouver, Canada.

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