Lululemon posts modest revenue growth in Q4, issues lackluster outlook amid board challenges

Overview

• US athletic apparel retailer's fiscal Q4 revenue rose 1%, slightly beating analyst expectations

• Diluted EPS for fiscal Q4 fell to $5.01 from $6.14 a year earlier

• Company repurchased 1.4 mln shares for $269.1 mln in Q4

Outlook

• Lululemon sees Q1 revenue between $2.4 bln and $2.43 bln, up 1%-3%

• Company expects Q1 diluted EPS of $1.63 to $1.68

• Lululemon forecasts 2026 revenue of $11.35 bln to $11.5 bln, up 2%-4%

• Company expects 2026 diluted EPS of $12.10 to $12.30

Result Drivers

• INTERNATIONAL GROWTH - Double-digit international revenue and comparable sales growth offset declines in the Americas

• AMERICAS WEAKNESS - Americas net revenue decreased 4% and comparable sales fell 1% as company cited need to improve full-price sales in North America

• NEW PRODUCT LAUNCHES - Company said initial response to recent product launches and guest activations was positive, especially internationally

Company press release: ID:nBw13PGfka

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 29 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy."

• Wall Street's median 12-month price target for Lululemon Athletica Inc is $204.00, about 27.6% above its March 16 closing price of $159.91

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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