Are Lululemon's Investors Overreacting To Lackluster Guidance? 8 Analysts Explore Q4 Results, Future Outlook
Portfolio Pulse from Priya Nigam
Lululemon Athletica Inc (NASDAQ:LULU) shares dropped after Q4 earnings, despite beating expectations, due to lower-than-expected 2024 guidance. Analysts from Truist Securities, JPMorgan, Wedbush, Goldman Sachs, BMO Capital Markets, Needham, Citi Research, and Telsey Advisory Group provided mixed reactions, adjusting their price targets and expressing concerns over slowing US trends and conservative outlooks. International growth, especially in China, remains strong, but North American growth is moderating. Analysts remain optimistic about product innovations and the company's ability to outperform guidance.
March 22, 2024 | 5:00 pm
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NEGATIVE IMPACT
Lululemon's stock price declined due to lower-than-expected 2024 guidance, despite a Q4 earnings beat. Analysts have mixed views but generally reduced price targets, citing concerns over US market trends while acknowledging strong international growth and product innovation.
The stock price impact is negative in the short term due to the company's lower-than-expected guidance for 2024, which has led to a decrease in investor confidence and a subsequent drop in share price. Analysts' adjustments of price targets and concerns over slowing US trends further contribute to the negative outlook, despite optimism about international growth and product innovation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100