Lululemon Athletica, Inc.
2025 Guidance Disappoints: Lululemon said it expects full-year 2025 revenue to be in the range of $11.15 billion to $11.3 billion, versus estimates of $11.301 billion. The company sees full-year earnings in the range of $14.95 to $15.15 per share, versus estimates of $15.30 per share.
CEO Calvin McDonald gave some insight into the company's financial outlook during a conference call with analysts on Thursday, pointing to "dynamic" political and economic conditions affecting the U.S. consumer.
"Based on a survey we conducted earlier this month in conjunction with Ipsos, consumers are spending less due to increased concerns about inflation and the economy. This is manifesting itself into slower traffic across the industry in the U.S. in Quarter 1, which we are experiencing in our business as well," McDonald said on the call.
Though Lululemon stores are seeing less traffic, the CEO said the guests who visit stores are responding well to the "newness and innovations" of the brand.
Several analysts lowered their price targets on Lululemon shares following the company's Q4 print:
- Morgan Stanley analyst Alexandra Steiger maintained Lululemon Athletica with an Overweight and lowered the price target from $411 to $373.
- JP Morgan analyst Matthew Boss maintained Lululemon Athletica with an Overweight and lowered the price target from $437 to $391.
- Needham analyst Tom Nikic maintained Lululemon Athletica with a Buy and lowered the price target from $430 to $366.
- Telsey Advisory Group analyst Dana Telsey maintained the stock with an Outperform and lowered the price target from $445 to $385.
- B of A Securities analyst Lorraine Hutchinson maintained Lululemon with a Buy and lowered the price target from $480 to $400.
- Piper Sandler analyst Anna Andreeva maintained the stock with a Neutral and cut the price target from $340 to $315.
- Stifel analyst Jim Duffy maintained Lululemon with a Buy and lowered the price target from $438 to $424.
