Analysts remain optimistic on the future of Lululemon, despite challenging economic headwinds that could be on the horizon.
The Canadian athletic fashion brand reported fourth-quarter revenue guidance in the range of US$3.14 billion to $3.17 billion, which fell below expectations as high-income shoppers focus on entertainment and travel.
Still, Wedbush analyst Tom Nikic remains bullish on the company.
“I think there was a lot to like in the earnings print last night,” he told BNN Bloomberg in a television interview on Friday.
“Their Q4 guidance, they insinuated on the call that it’s very, very conservative. They’re very happy with their performance over the Black Friday-Thanksgiving weekend. All in, they just seem to have a lot of momentum in their business.”
On Friday morning, shares of Lululemon reached an all-time high of US$479.75.
Analysts at Stifel are also optimistic about the brand’s prospects.
“We view the (fourth-quarter) outlook as conservative and encourage investors to use any weakness in shares as a buying opportunity,” the company wrote in a note to investors.
“Considering the growing contribution of international (outside North America now 22 per cent of revenue) and impressive growth trajectory, we think the market is underappreciating the growth contribution and potential.”
Analysts with Citi also rate Lululemon as a buy, pointing to the company’s closing inventory gap and sales growth in China as reasons to be optimistic.
“Stepping back, (the third-quarter) highlights LULU’s position as a market share winner despite a choppy macro backdrop,” the company wrote in a note.
Jessica Ramirez, senior analyst at Jane Hali and Associates, is taking a more cautious approach, but said the outlook is the same a most other fashion brands.
“We’ve seen some strong results in some cases and some mixed, but going forward – just because of the climate we do have with the consumer and around the globe – it is taking a cautious approach overall,” she told BNN Bloomberg in a television interview on Thursday.
“Lulu is a strong brand overall, so we can still see with the numbers, even despite the climate that we’re going through, this brand continues to deliver strong results and has the customer coming back into their doors.”
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
