Lululemon (LULU) To Report Earnings Tomorrow: Here Is What To Expect

Athletic apparel retailer Lululemon (NASDAQ:LULU) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.

Lululemon met analysts’ revenue expectations last quarter, reporting revenues of $2.21 billion, up 10.4% year on year. It was a mixed quarter for the company, with strong earnings guidance for the full year but full-year revenue guidance missing analysts’ expectations.

Is Lululemon a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Lululemon’s revenue to grow 9% year on year to $2.41 billion, slowing from the 18.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.94 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lululemon has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.3% on average.

Looking at Lululemon’s peers in the apparel and footwear retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 1%, and Boot Barn reported revenues up 10.3%, topping estimates by 1.6%. Urban Outfitters traded down 9.5% following the results while Boot Barn was up 13.7%.

Read our full analysis of Urban Outfitters’s results here and Boot Barn’s results here.

Investors in the apparel and footwear retail segment have had steady hands going into earnings, with share prices flat over the last month. Lululemon is up 5.9% during the same time and is heading into earnings with an average analyst price target of $338.8 (compared to the current share price of $271).

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