Lululemon Q4 results: ‘has a lot on its plate going into 2022’

on Mar 29, 2022
  • Lululemon reports solid results for Q4 and offers upbeat future guidance.
  • Jefferies' Randy Konik discussed Lulu's earnings on CNBC's "Closing Bell".
  • Shares of Lululemon Athletica shot up nearly 9.0% in after-hours trading.

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Lululemon Athletic Inc (NASDAQ: LULU) on Tuesday reported record sales for fiscal 2021 and gave promising guidance for the future. The stock climbed nearly 9.0% after-hours.

Q4 financial highlights

  • Profit came in at $435.4 million, an increase from last year’s $330 million.
  • Adjusted per-share earnings stood at $3.37 versus the year-ago figure of $2.58.
  • Revenue jumped 23% YoY to $2.13 billion, as per the earnings press release.
  • Analysts had forecast $3.27 of adjusted EPS on $2.14 billion in revenue.
  • Opened 22 net new company-operated stores in the fourth quarter.
  • Board authorised another $1.0 billion in share repurchases.

For fiscal 2021 as a whole, Lululemon noted an annualised growth of 65.6% and 42.1% in profit and revenue, respectively.

Guidance and analyst’s remarks

For Q1, Lululemon expects revenue to come in between $1.525 billion and $1.55 billion. It expects $1.38 to $1.43 in adjusted EPS this quarter. FactSet consensus was for $1.28 in per-share earnings on $1.41 billion in revenue.

Its full-year forecast was also ahead of expectations. On CNBC’s “Closing Bell”, Jefferies’ Randy Konik reiterated his “hold” rating on Lululemon and said:

With a lot more competition (including from Nike), integration of Mirror, and recent launch of the footwear, we think Lululemon has a lot on their plate going into 2022. The added items could dilute their focus and create issues of execution as we go into the back half of 2022.

He has a price target of $340 on LULU.