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Lululemon (NASDAQ: LULU) Stock Outpaces S&P 500 But Faces Declining Earnings Outlook
['David Prior']
Foreign Policy Journal
Lululemon Athletica (NASDAQ: LULU) closed at $120.32 in the most recent trading session, posting a gain of 2.11% and outpacing the S&P 500’s modest 0.21% advance on the day.
Over the past month, LULU shares have appreciated by 3.1%, beating both the Consumer Discretionary sector’s loss of 0.15% and the S&P 500’s gain of 1.7%.
Despite recent price strength, analysts are bracing for a significant earnings contraction when the athletic apparel maker reports its upcoming quarterly results.
The Zacks Consensus Estimate calls for earnings of $1.79 per share in the next report, which would represent a year-over-year decline of 42.26% from the comparable prior period.
Adding further pressure to the stock’s near-term outlook, the Zacks Consensus EPS estimate has moved 1.77% lower over the past month, reflecting growing caution among analysts covering the company.