Lululemon Athletica inc. (LULU) Has Favorably Updated Fourth Quarter Guidance

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After the market closed today, Lululemon Athletica inc. (NASDAQ:LULU) announced that they have revised their fiscal 2015 fourth quarter guidance upwards. The company now expects to report net revenue between $690 to $695 million for the quarter, up from their previous guidance of $670 to $685 million. This adjustment would be mean that revenues will rise approximately 15% when compared to the previous fourth quarter. EPS guidance has also been revised higher for the quarter to between $0.78 and $0.80 from $0.75 to $0.78.

“We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks. Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance. We are looking forward to 2016 and will enter the year with a very strong leadership team across the company that is relentlessly driving our strategic priorities and long term vision,” said Laurent Potdevin, CEO of Lululemon Athletica inc. (LULU).

Shares of Lululemon Athletica inc. (NASDAQ:LULU) are trading up significantly in after hours, where the stock is up $3.99 or 7.29%. The stock increased 1.52% or $0.82 during the last trading session, hitting $54.73. About 3.04 million shares traded hands. LULU has declined 15.50% since June 5, 2015 and is downtrending. It has underperformed the S&P500 by 10.81%.

From a total of 25 analysts covering Lululemon Athletica Inc. (NASDAQ:LULU) stock, 15 rate it a “Buy”, 3 a “Sell”, and 7 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $75.0 while the lowest target price is $40. The mean of all analyst targets is $58.52 which is 6.92% above today’s ($54.73) stock price. Lululemon Athletica Inc. was the topic of 43 analyst reports since August 18, 2015 according to the firm StockzIntelligence Inc. Jefferies upgraded shares on January 4 to a “Buy” rating. Credit Suisse upgraded shares to a”Outperform” rating and a $64 target share price in their report from an October 16. Deutsche Bank maintained LULU stock in a recent report from December 10 with a “Hold” rating. M Partners initiated the rating on September 17. M Partners has a “Buy” rating and a $69 price target on shares. Finally, Oppenheimer maintained the stock with a “Outperform” rating in a report they issued on a December 10.

The institutional sentiment increased to 1.14 in Q2 2015. It’s up 0.07, from 1.07 in 2015Q2. The ratio improved, as 48 funds sold all their Lululemon Athletica inc. shares they owned while 98 reduced their positions. 43 funds bought stakes while 123 increased their total positions. Institutions now own 129.33 million shares which is 4.04% more than the previous share count of 124.30 million in 2015Q2.

Advent International Corp Ma holds 27.96% of its total portfolio in Lululemon Athletica inc., equating to 20.11 million shares. Chautauqua Capital Management owns 662,159 shares representing 11.03% of their total US portfolio. Moreover, Sib Llc has 5.48% of their total portfolio invested in the company, equating to 132,728 shares. The New York-based Blue Arrow Capital Management Llc has a total of 3.72% of their portfolio invested in the stock. Melvin Capital Management Lp, a New York-based fund reported 1.25 million shares owned.

Since March 30, 2015, the stock had 1 insider buy, and 0 insider sales for a total of $214,060 in net activity. Poseley Tara bought 4,000 shares worth $214,060. Pitcher Rhoda M. sold 10,000 shares worth $673,000. Stemberg Thomas sold 5,310 shares worth $345,734.

lululemon athletica inc. is a designer and retailer of technical athletic apparel. The company has a market cap of $7.45 billion. The Firm offers a line of apparel and accessories for women, men and female youth. It has 29.91 P/E ratio. The Company’s apparel assortment includes items, such as pants, shorts, tops and jackets designed for healthy lifestyle activities and athletic pursuits, such as yoga, running, general fitness and dance-inspired apparel for female youth.

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