What's Going On With Lululemon Stock After Earnings?

Author: Erica Kollmann | August 30, 2024 10:47am

Lululemon Athletica Inc. (NASDAQ:LULU) shares were trading higher early Friday before paring gains following the company's Q2 financial results.

The Details:

Lululemon beat analyst earnings expectations, but revenue fell short of the Street's estimates. The company saw a 7% year-over-year increase in total revenue and a 2% rise in comparable sales. Notably, international revenue surged by 29% year-over-year, while Americas net revenue grew by 1%.

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Lululemon shares pulled back Friday, possibly due to the company's soft full-year 2024 revenue guidance range which was below analyst estimates of $10.618 billion.

Multiple analysts updated coverage on the stock following the print:

• TD Cowen analyst John Kernan maintained a Buy rating and raised the price target from $375 to $382.
• Raymond James analyst Rick Patel maintained Lululemon Athletica with an Outperform, but lowered the price target from $350 to $325.
• Morgan Stanley maintained the Lululemon stock with an Overweight rating, but lowered the price target from $329 to $326.
• B of A Securities analyst Lorraine Hutchinson maintained a Buy, but lowered the price target from $440 to $355.

Following the company's earnings release Thursday, CNBC host Jim Cramer said he thinks Lululemon stock "may have bottomed." According to data from Benzinga Pro, Lululemon shares are down more than 50% year-to-date. 

Will LULU Stock Go Up?

When trying to assess whether or not Lululemon Athletica will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $356.98 on Lululemon Athletica. The Street high target is currently at $470 and the Street low target is $220. Of all the analysts covering Lululemon Athletica, 28 have positive ratings, 11 have neutral ratings and 2 have negative ratings.

In the last month, 18 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Lululemon Athletica have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Lululemon Athletica is 49.66% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Lululemon Athletica, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

LULU Price Action: According to Benzinga Pro, Lululemon Athletica shares are down 1.02% at $256.38 at the time of publication Friday.

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Posted In: LULU