Lululemon (LULU) Rallies on Solid Q4 and Even Stronger FY Outlook

Trade LULU Stock Your Capital Is At Risk
Ollie Martin
Updated: 30 Mar 2022

Key points:

  • LULU shares gained 8.5% with investors reacting to the retailers positive FY outlook
  • Lululemon expects earnings FY earnings of $9.15 compared to the consensus of $7.69
  • The company also announced a $1B stock repurchase program

Along with the likes of Arhaus and Chewy, Lululemon Athletica (NASDAQ: LULU) was the third retailer to deliver quarterly earnings at a time when uncertainty governs the market. It’s been incredibly hit and miss for retailers, some share prices plummeting as companies fail to grapple with market headwinds, but some seem to have navigated issues and remain upbeat and optimistic about the year to come.

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 Shares of Lululemon, the athletic apparel retailer, are currently trading around 8.5% in mid-market Wednesday trading after the company delivered a strong Q4 and an even more ambitious FY forecast. 

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Lululemon earned an adjusted $3.37 per share, with revenue jumping more than 23% annually to a record $2.13B. Wall Street was looking for an EPS of $3.27 on revenue of $2.13B. Albeit impressive, it was the company’s FY22 outlook that really started to turn heads. 

The athletic apparel retailer expects to earn between $9.15 and $9.35 with revenue between  $7.49B and $7.62B; soaring past the consensus of $7.69 per share and revenue of $6.26B. To further allure buyers, the company also announced a $1B stock repurchase program.

The athletic apparel market is clearly still popular with consumers, with today’s stellar report echoing the recent robust results from fashion giant Nike. Investors are looking mostly towards fiscal outlook as a better indicator of how the company is dealing with the current environment. Some clearly appear to be less affected than others. Lululemon delivered on demonstrating quarterly growth, but more importantly, its firm positioning for the rest of the year. 

 

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