Lululemon (NASDAQ: LULU) is set to announce its third-quarter earnings on Thursday afternoon. Investors are closely watching expectations after the company missed revenue forecasts by 0.5% in the previous quarter, reporting $2.53 billion in sales, a 6.5% increase year over year.
For this quarter, analysts predict Lululemon’s revenue to grow 3.3% year over year to $2.48 billion, marking a slowdown from the 8.7% growth in the same quarter last year. Adjusted earnings per share (EPS) are expected to be $2.21, reflecting cautious optimism about the company’s near-term profitability.
Revenue Growth Trends and Analyst Sentiment
Over the last 30 days, most analysts have maintained their estimates, indicating confidence in Lululemon sustaining its current performance. Still, the company has missed Wall Street revenue estimates twice in the past two years, which highlights some volatility concerns.
Comparison with Industry Peers
Other apparel retailers have recently reported strong Q3 results, offering insight into market conditions. Zumiez posted a 7.5% revenue increase, beating forecasts by 2%, while American Eagle saw a 5.7% rise, topping estimates by 3.1%. Both stocks experienced notable gains—Zumiez climbed 12.3%, and American Eagle surged 14.6% following their reports.
Investor Sentiment and Price Targets
Investor sentiment in the apparel retail segment remains positive, with average shares up 10.5% over the last month. Lululemon shares have increased 7% during the same period, trading at around $182.16. Analysts have set an average price target of $190.19, suggesting moderate upside potential.
As earnings approach, the market will watch closely for how Lululemon navigates slowing revenue growth amid a competitive retail environment. The company’s ability to meet or exceed analyst expectations could influence its stock trajectory significantly in the coming weeks.
Read more at: finance.yahoo.com
