Lululemon stock surged 16% after strong Q3 results, expects solid Q4 revenue growth.

From Nasdaq: 2024-12-09 22:40:20

Lululemon (NASDAQ: LULU) stock surged 16% after posting strong Q3 results, with revenue up 9% y-o-y to $2.4 billion and EPS beating estimates at $2.87 per share. Despite challenges in 2024, LULU expects Q4 revenue growth of 8-10% y-o-y and full-year revenue of $10.45-$10.49 billion. Operating margin grew to 20.5%.

The increase in LULU stock over the last 3 years has been volatile, with annual returns of 12% in 2021, -18% in 2022, and 60% in 2023. LULU’s P/E ratio at 29x remains 28% lower than FY 2023 levels, trading at a discount compared to historical averages. The company’s operating margins of ~20% are unmatched by competitors.

Lululemon’s forecasted revenues for FY 2024 are $10.4 billion, up 9% y-o-y, with an EPS of $14.12. This revision has led to a valuation of $321 per share, almost 20% lower than the current market price. LULU’s international sales grew 33% y-o-y, driven by strength in China, and the company expects strong results for the holiday shopping quarter.



Read more at Nasdaq: Lululemon Stock Down 22% This Year, What’s Next?