Seeking Alpha

Lululemon watch: Shares +2.2% as execs prep for Q&A

  • Lululemon (LULU) trades higher after beating lowered expectations for the tough holiday period.
  • Investors are giving the company a pass on the drop in comparable-store sales and shrunken margins during Q4 as there is a growing sentiment that a corner has been turned.
  • Lowered guidance isn't being taken too seriously as the retailer is tapped for a beat by many retail watchers.
  • On CNBC, the phrase "accelerating global expansion" for Lululemon was bandied around this morning. The firm's conference call is underway (webcast) and it would be convenient to investors if an analyst asked a question on that topic.
  • LULU +2.2% premarket
Comments (2)
  • golfer4ever
    , contributor
    Comments (28) | Send Message
     
    I just don't get it. NIKE beats top and bottom, increases seen in margins but states FX concerns going forward to impact future quarters. Stock gets hammered. LULU beats the "lowered estimates", but has lower same store sales, lower margins and the stock rallies 5+%? where is the rational behavior in the market today? will FX not impact LULU as they try to sell overseas? Need someone to help me make sense of this.
    27 Mar 2014, 02:07 PM Reply Like
  • meta9999
    , contributor
    Comments (185) | Send Message
     
    My take on this is that many were expecting a far worse report.... that, combined with an upbeat forecast 6 months to one year out created a quick pop. I don't expect this rally to go very far, whereas I believe NIKE will bounce back. Still, though, retail in general has not performed well lately. Regardless of what you may hear from the media and the politicians, retail sales look ugly...
    http://bit.ly/1i0zDRA
    27 Mar 2014, 09:57 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs