Lululemon Athletica Q3: Demise Of The Company's Growth Greatly Exaggerated
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Lululemon Athletica Inc. reported strong Q3 results, with EPS up 46.4% year-over-year and gross margins expanding by 150 basis points. The company's stock rallied 16% due to robust international growth, particularly in China, which offset US market challenges. The forward P/E ratio of 28.2x suggests a price target of $451, indicating a 13% upside.

December 09, 2024 | 6:00 pm
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Lululemon Athletica Inc. exceeded Q3 expectations with a 46.4% increase in EPS and a 16% stock rally. Strong international growth, particularly in China, offset US market challenges. The forward P/E ratio of 28.2x suggests a price target of $451, indicating a 13% upside.
Lululemon's strong Q3 performance, with significant EPS growth and stock rally, indicates positive investor sentiment. The robust international growth, particularly in China, offsets US market challenges, supporting the stock's upward momentum. The attractive valuation with a forward P/E of 28.2x and a price target of $451 suggests further upside potential.
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