Lululemon Q2 Earnings Preview: Analyst Says Apparel Stock Oversold
Portfolio Pulse from Chris Katje
Lululemon Athletica Inc (NASDAQ:LULU) is set to release its Q2 earnings, with analysts expecting revenue of $2.41 billion. Despite concerns over sluggish US sales and execution issues, Truist analyst Joseph Civello believes the stock is oversold and maintains a Buy rating with a $310 price target. Lululemon has consistently beaten revenue and earnings estimates, but faces competition from brands like Vuori and Alo Yoga. Goldman Sachs downgraded the stock due to execution challenges. Key areas to watch include international growth and product innovation.
August 28, 2024 | 7:22 pm
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Lululemon is expected to report Q2 earnings with anticipated revenue of $2.41 billion. Despite execution issues and competition, analysts see the stock as oversold. Truist maintains a Buy rating with a $310 target, while Goldman Sachs downgraded it due to challenges.
Lululemon has a history of beating earnings estimates, and despite current challenges, analysts believe the stock is undervalued. The focus on international growth and product innovation could drive future performance. The mixed analyst ratings reflect both potential and risks.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100