What to look for in Lululemon's Q3 earnings report?

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• Lululemon (NASDAQ:LULU) is scheduled to announce Q3 earnings results on Thursday, December 9th, after market close.
• The consensus EPS Estimate is $1.40 (+20.7% Y/Y) and the consensus Revenue Estimate is $1.44B (+28.6% Y/Y).
• Over the last 2 years, LULU has beaten EPS estimates 88% of the time and has beaten revenue estimates 88% of the time.
• Over the last 3 months, EPS estimates have seen 21 upward revisions and 3 downward. Revenue estimates have seen 22 upward revisions and 0 downward.
• Story from a day before: 'Lululemon's reduced markdowns should lead to earnings meet or beat - Baird'
• From last week: 'Lululemon, Capri and Deckers land on BTIG's list of top retail picks'
• The stock has scaled about 11% the day after gave Q2 beat and guided above consensus: for Q3 company expected revenue in the range of $1.4B to $1.43B vs consensus of $1.32B and adjusted EPS between $1.33 and $1.38 vs consensus of $1.32.
• A comparative look at ratings of the stock against its peers:

• Price performance against the peers over the last one year

• The company is getting to report its Q3 earnings this week, and has a strong track record of earnings surprises, coming off five consecutive beats since Q2 2020. - writes a contributor, giving the stock a Neutral rating.

Comments

[Jody Arthur]

Cowen and Co. analyst John Kernan lowered his Lululemon Athletica Inc. (LULU-Q -2.06% decrease) target to US$515 from US$520 with an “outperform” rating. The average is US$468.57. 'Nuff said!

[Disciple5]

Risk/reward here is not good. Any slowdown in growth, and look out below.

[DIV12]

What to look for in Lululemon's Q3 earnings report?

Any sensible reason for its bloated valuation. Reminds me of Abercrombie & Fitch back in 2007