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Shares of popular athleisure brand Lululemon have plummeted this year, trailing the S & P 500 significantly. Its shares, which were included in the Wall Street index just last October, are down around 28% year-to-date. Dwyer also pointed out that Lululemon is unlikely to be exposed to any geopolitical risks surrounding China. "Millennials represent around a third to 40% in China and then Gen Z are a much bigger share of the demographic - they are fans of this brand," Dwyer. According to FactSet, Lululemon has a buy rating of 69% and analysts covering the stock give it 28.1% potential upside from the average price target.
Persons: Jack Dwyer, Dwyer, FactSet, Lululemon Organizations: Infusive Asset Management, CNBC, Consumer Alpha Global, Fund, Netflix, PepsiCo Locations: China, , LVMH
Disappointing sales outlooks from Lululemon and Nike prompted CNBC's Jim Cramer on Friday to wonder whether the big athletic apparel makers are ceding ground to lower-priced competitors. "Nike, Lulu — are these companies that are just charging too much when others are coming underneath them with good product? Shares of Lululemon tanked more than 16% Friday after issuing light current-quarter and full-year guidance after the closing bell Thursday. The company's finance chief said weaker U.S. traffic and a challenging consumer environment has led to the "broad-based" slowdown. Lululemon's earnings report and outlook was "surprising," Cramer said, considering the Vancouver, Canada-based firm has been viewed as a "high-growth company."
Persons: CNBC's Jim Cramer, Lulu —, Cramer, LULU, Ralph Lauren Organizations: Nike, Management Locations: Vancouver, Canada
The retailer reported holiday earnings on Thursday evening that topped expectations, but showed that its growth in North America is stagnating. During the quarter, sales rose 9% in the Americas, compared to 29% growth in the year-ago period. For the current quarter, Lululemon expects net revenue to be between $2.18 billion and $2.20 billion, representing growth of 9% to 10%. For the full year, it expects sales to be between $10.7 billion and $10.8 billion, compared with estimates of $10.9 billion, according to LSEG. During the quarter, it opened its first men's store in Beijing — a key growth market for the company.
Persons: Lululemon, you've, Calvin McDonald, McDonald, Alo Yoga, it's, Meghan Frank Organizations: LSEG, U.S Locations: U.S, North America, Americas, China, Vancouver, Beijing
Victoria's Secret & Co. at the New York Stock Exchange, September 7, 2021. Victoria's Secret shares plunged about 29% premarket on Thursday after the lingerie brand forecast weaker annual sales following a sluggish start to the year as shoppers in its key North America market switch to cheaper options. It expects first-quarter net sales to decline in the mid-single-digit range, compared with analysts' expectation of a 2.5% fall. Victoria's sports bras were priced between $45 and $88, while Lululemon's were between $29 and $78, their websites showed. In 2024, Victoria's Secret plans to open about 15 new stores in North America, mostly in off-mall locations, despite slow demand, and close 35 stores mainly due to consolidation of co-located Victoria's Secret and PINK stores.
Persons: Dana Telsey, Matthew Boss Organizations: New York Stock Exchange, Telsey Advisory Locations: North America
A corporate stylist said one of Gen Z's biggest work style mistakes is exposing too much skin. Gen Z is new to the workplace and still learning what is appropriate to wear to work. AdvertisementA corporate stylist advises Gen Z workers to ditch the crop tops and mini skirts in the office, and ensure that they’re covered "from nips to knees." AdvertisementTeich said that Gen Z workers are "dressing down a little more than what we would deem, in the past, is appropriate for the office." Corporate stylist Maree Ellard shows an example of a fashionable but work-appropriate outfit.
Persons: Z's, Maree, , Gen, Maree Ellard, Ellard, ” Ellard, Liz Teich, Jack Archer's, Teich, Ryan Vogel, they're Organizations: Service, Jack, Fox School of Business, Temple University Locations: Australia, New York, midsize New York
Lululemon is launching its first men's footwear line and casual sneaker as the retailer looks for new avenues of growth in the increasingly crowded athletic apparel space, the company announced Thursday. The retailer is debuting its first casual sneaker, dubbed "cityverse," along with two new running shoes that will all come in both men's and women's styles for the first time. Cityverse will launch Feb. 13, while the new running models will debut in March and May. Lululemon's foray into men's footwear is part of a larger strategy the company announced in April 2022 to double its men's business and grow revenue to $12.5 billion by 2026. Still, the launch is just "icing on the cake and a bonus" for Lululemon because the company's growth strategy "isn't reliant on footwear," said Neuburger.
Persons: Nikki Neuburger Organizations: CNBC
Oppenheimer downgraded Home Depot and Lowe's to perform from outperform, cutting its price targets on both names. On a more upbeat note, Goldman Sachs upgraded Brazilian payments stock StoneCo, calling for more gains ahead after a strong 2023. "While lululemon's fundamentals are undoubtedly best-in-class, we do not see the valuation as compelling enough for us to recommend investors buy at current share price levels." Oppenheimer's forecast implies roughly 5% downside moving forward for Home Depot stock and 5% upside for Lowe's. Shares of Home Depot have added 5% so far this year while Lowe's stock has slipped more than 1%.
Persons: Oppenheimer, Lowe's, Goldman Sachs, Hunt, Thomas Wadewitz, Brian Evans, Morgan Stanley, Morgan Stanley's, Lisa De Neve, — Brian Evans, Lululemon, LULU 1Y, Anne, Laure Bismuth, Brian Nagel, Tito Labarta, Labarta, — Fred Imbert Organizations: CNBC, UBS, HSBC downgrades, HSBC, Lowe's, Home Depot Locations: Hunt, J.B, LULU, Brazil
Lululemon founder Chip Wilson criticized the company's 'whole diversity and inclusion thing.' Former Lululemon employees of color said Wilson's remarks and the company's response failed its mission of increasing diversity. AdvertisementLululemon's employees of color are making their voices heard after the company's founder blasted its diversity initiatives. In January, Lululemon founder Chip Wilson told Forbes that he doesn't agree with the company's "whole diversity and inclusion thing." "The company has failed all Black employees and employees of color," Michael Collins, a former Lululemon store manager, told Business Insider.
Persons: Chip Wilson, , Forbes, Wilson, You've, Wilson's, Michael Collins, they're, women's, Lululemon, Collins, Miya Dotson, Dotson Organizations: Service, Business, Fashion, Equity
Lululemon on Thursday said it saw strong third-quarter demand and a positive start to the holiday shopping season, but the retailer's shares fell in extended trading after it gave a tepid fourth-quarter outlook. During the quarter, sales jumped 12% in North America and 49% internationally, but the retailer's holiday guidance came in light of expectations. For the full year, Lululemon expects sales to be between $9.55 billion and $9.58 billion, compared to estimates of between $8.11 billion and $9.90 billion, according to LSEG. He added that Lululemon is "encouraged" by the trends it has seen at the start of the holiday season. During Lululemon's third quarter, total comparable sales were up 13%, higher than the 12.4% jump analysts had expected, according to StreetAccount.
Persons: Lululemon, We're, Meghan Frank, Calvin McDonald, McDonald Organizations: LSEG, CNBC PRO Locations: North America
Lululemon — Shares declined 2% after Wells Fargo downgraded the athleisure company to equal weight from overweight. The firm said Lululemon's prior positive catalysts have already played out, and it forecasts more muted growth in 2024. Spotify — Shares added 8.8% after the music streaming company announced it would lay off 17% of its workforce. The three stocks will replace Sealed Air , Alaska Air Group and SolarEdge Technologies . Virgin Galactic — Shares of the space company plunged nearly 15%.
Persons: Wells, MicroStrategy, Dow, FirstSource, Richard Branson, Branson, KeyBanc, Carvana, Morgan Stanley, — CNBC's Hakyung Kim, Jesse Pound, Alex Harring, Samantha Subin, Yun Li, Lisa Kailai Han, Sarah Min, Michelle Fox Organizations: Marathon, Spotify, Technologies, Uber Technologies, Dow Jones, Builders, Alaska Air Group, SolarEdge Technologies, Galactic —, Financial, United, JPMorgan, Alaska Air Group —, Hawaiian Airlines, Alaska Air, Hawaiian Holdings, General Motors, Cadillac, Chevrolet, Mizuho Securities, United Auto Workers, Palo Alto, Palo Alto Network Locations: MicroStrategy, British, Seattle, Palo
Uber Technologies — The ride-hailing stock rose 4% after S & P Dow Jones Indices on Friday said it will enter the S & P 500, along with Jabil and Builders FirstSource . The three will replace Sealed Air , Alaska Air Group and SolarEdge Technologies . Alaska Air Group — The Seattle-based carrier slid 12% after agreeing to acquire Hawaiian Airlines for $1.9 billion. Alaska Air, which would pay $18 a share, would take on $900 million in debt as part of the deal. Alaska Air is also coming out of the S & P 500 index.
Persons: , Coinbase, MicroStrategy, Dow, Wells, Carvana, — CNBC's Michelle Fox, Hakyung Kim, Pia Singh, Samantha Subin Organizations: Marathon, Technologies, Dow Jones, Builders, Alaska Air Group, SolarEdge Technologies, General Motors, Cadillac, Chevrolet, Mizuho Securities, GM, United Auto Workers, Spotify, CNBC, Hawaiian Airlines, Alaska Air, Hawaiian Holdings, Alaska, JPMorgan Locations: Seattle
The logo for Lululemon Athletica is seen at a store in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNEW YORK, Oct 16 (Reuters) - Lululemon Athletica's (LULU.O) stock jumped by more than 10% to an almost two-year high on Monday buoyed by the addition of the Canadian sportswear maker into the Wall Street benchmark S&P 500 index. Inclusion of a company into the S&P 500 usually causes demand for its shares to jump as mutual fund managers and other institutional investors tracking the index begin adding the stock to their portfolios. The stock is now up nearly 30% year-to-date, giving the company a market capitalization of more than $52 billion. In September, Lululemon agreed to a deal with Peloton Interactive (PTON.O) to become the primary athletic-apparel maker for the U.S. fitness bike manufacturer.
Persons: Andrew Kelly, Dow Jones, Lululemon, Chibuike Oguh, Lance Tupper, Sharon Singleton Organizations: REUTERS, Activision Blizzard, Microsoft, Interactive, Lululemon, Thomson Locations: Manhattan , New York, U.S, New York
The pandemic pushed financial giants to embrace a more casual dress code that many other corporations had begun to embrace. Diversity in dressFor some women on Wall Street, the shift from business formal to business casual has allowed them to step out of the unofficial uniform of pantsuits and sheath dresses. Lululemon in the boardroomNo Wall Streeters mentioned buying more Ferragamo ties, but many said they were leaning into athleisure. People still come in wearing their suits and ties and their Louboutins, and I'm like, 'what are we doing here?' "For a lot of client interactions, dressing business casual can make it more comfortable and can lead to a better relationship-building experience."
Persons: Luis Arteaga, Shanta Wu, Kristen Powers, Morgan Stanley, She's, Thom Browne, Anne, Victoire Auriault, Goldman Sachs, Jack Dillon, He's, David Trinh, It's, we've, Thoma Bravo, Andrew Almeida, Richard Handler, Jefferies, Katya Brozyna, I'm, Benjamin Kiflom, Neil Kamath, Sarah Sigfusson, Michael Wilkinson, Wells, Patrick McGoldrick, Laiwala, I've, Rachel Hunter, Goldman, Luna McKeon, Ricky Mewani, Dominic Rizzo, Rowe Price Organizations: Barclays, Fidelity, Vista Equity Partners, Bridgewater, Jefferies, Nike Air Force, Goldman Sachs Asset Management, Bank of, Moelis & Company, KKR, Blue Owl, Citadel Locations: Bridgewater, New York, Florida, Miami, San Francisco
Micron — The chipmaker's shares fell 3.4% Thursday before the bell on the back of a weaker-than-expected earnings forecast. For the fiscal fourth quarter, the company posted a narrower-than-expected loss as well as revenue that topped expectations. CarMax — Shares fell nearly 12% as fiscal second-quarter earnings fell from a year ago on weakening demand for used cars. Peloton — Shares popped nearly 14% in premarket trading Thursday after Peloton and Lululemon announced a five-year strategic partnership on Wednesday. The company's fourth-quarter earnings forecast of $3.03 to $3.15 per share also fell below analysts' forecasts of $3.33 per share, according to FactSet.
Persons: Ryan Cohen, Matthew Furlong, CarMax, Lululemon, DigitalBridge, Concentrix, FactSet, , Sarah Min, Pia Singh Organizations: Micron, LSEG, GameStop, UBS, JPMorgan
DigitalBridge — Shares of the digital infrastructure company jumped 5.8% after JPMorgan upgraded the company to overweight from neutral. After the market closed Wednesday, Jefferies posted earnings of 22 cents per share on revenue of $1.18 billion. Accenture — Shares of the IT and consulting firm fell nearly 5% Thursday after Accenture reported mixed results for its fiscal fourth quarter. The used-car retailer's fiscal second-quarter earnings and revenue slipped from a year ago on weakening demand for used cars. Concentrix — Shares gained 10% a day after Concentrix said it would hike its quarterly dividend 10% to about 30 cents a share.
Persons: Trimble —, DigitalBridge, Jefferies, Duolingo, Wolfe, Lululemon, CarMax, Concentrix, FactSet, , Jesse Pound, Christina Cheddar, Berk Organizations: Corporation, JPMorgan, Jefferies, UBS, Resorts, Wolfe Research, Accenture —, Accenture, StreetAccount, Micron, LSEG
CNBC's Jim Cramer on Thursday reviewed Lululemon 's Q2 earnings, and said he's pleased with the athletic apparel company's progress after seeing its stock plummet post-Covid. "I think it's not too late to get back into Lululemon if you bailed on it at some point over the past two years," Cramer said. Lululemon saw major success during the pandemic as many consumers purchased athleisure and loungewear while working from home. Inventory grew 14% in Q2, down from previous guidance of 20%, according to last week's conference call. "I bet Lulu has a terrific holiday season, especially now that their inventories are back at reasonable levels," Cramer said.
Persons: CNBC's Jim Cramer, he's, Cramer, Lululemon, fanny, Lulu Organizations: CNBC Locations: Lululemon, China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailLululemon's strong Chinese demand sets the stock apart from other retailers: Laffer Tengler CEONancy Tengler, CEO & CIO of Laffer Tengler Investments, joins 'The Exchange' to discuss how to trade the Broadcom and VMWare deal, Chinese demand for Lululemon setting it apart from other retailers, and Pagerduty seeing a stagnation in valuation since its IPO.
Persons: Nancy Tengler Organizations: Laffer, Investments, Broadcom, VMWare
In the second quarter ended July 30, Lululemon's North America sales rose 11% as its affluent customer base picked up more of its workout gear and crossbody bags. Sales in China, which accounted for roughly 12% of overall revenue, increased 61% thanks to resilient demand following the easing of pandemic curbs. Lululemon said inventories increased 14% in the second quarter, below the roughly 20% growth forecast in June. The company's gross margins increased 230 basis points to 58.8% in the second quarter. It expects annual profit between $12.02 and $12.17 per share.
Persons: Andrew Kelly, Lululemon, Calvin McDonald, Rachel Wolff, Granth, Maju Samuel Organizations: REUTERS, North, Lululemon's, Nike, Thomson Locations: Manhattan , New York, U.S, Lululemon's North America, United States, China, Bengaluru
Alo Yoga's "studio-to-street" fitness clothes are a hit with Gen Z and Gen Alpha, the Wall Street Journal reports. Segment leader Lululemon faces growing competition not just from upstarts like Alo, but also legacy brands like Nike. Alo Yoga is building a following among two key demographics, Gen Zers, loosely defined as those born between 1997 and 2012, and their younger counterparts, Gen Alpha, according to an article in The Wall Street Journal. Alo YogaAlo's growth was boosted by influencers and its digital rootsAlo Yoga started in Los Angeles in 2007. It's created openings for others beyond Alo, but Alo certainly has started to set itself apart as a power brand in its own right."
Persons: Alo Yoga's, Gen Z, Alpha, Alo, , Lululemon, Alo Yoga, Gen Zers, Gen Alpha, it's, I'd, Andrew Lipsman, Lipsman, Hailey Bieber, Bella Haddad, Budrul Chukrut, Danny Harris, Wall, It's, Lisman Organizations: Wall Street, Nike, Service, Street, Intelligence, influencers, Ford, GM, Chrysler Locations: Los Angeles, China, Alo
Lululemon's first-quarter results also moved past estimates as the company saw traffic across both its stores and online up about 30%. The company also reported a 79% rise in sales in China, bolstered by the rollback of COVID restrictions. The company's strong results also lifted shares of other athletic wear makers including Nike Inc (NKE.N) and Athleta owner Gap Inc (GPS.N) by 3% and 1%, respectively, in premarket trading. "We continue to believe that Lululemon is best positioned in a consumer slowing cycle," said Adrienne Yih, analyst at Barclays. Reporting by Savyata Mishra and Aishwarya Venugopal in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.
Persons: Piper Sandler, Abbie Zvejnieks, Lululemon's, Cowen, Adrienne Yih, Savyata Mishra, Aishwarya Venugopal, Krishna Chandra Organizations: Barclays, Nike Inc, Gap Inc, Adidas, Puma, Thomson Locations: China, U.S, Bengaluru
Sales rose 24% to $2 billion, up from $1.61 billion a year earlier. It expects full-year profit of $11.74 to $11.94 per share, compared with a prior range of $11.50 to $11.72. That also topped analysts' expectations, which called for $11.61 per share, according to Refinitiv. Lululemon is expecting second-quarter sales to be in the range of $2.14 billion to $2.17 billion, representing growth of about 15%. While DTC revenue increased compared to last year, it represented 42% of total sales, compared to 45% in the year-ago period.
Persons: Meghan Frank, Lululemon, men's, they're, Frank, we'll Organizations: Club, Constellation Brands, Molson Coors Locations: China
Lululemon — Lululemon's stock popped 12% after the athletics apparel retailer posted better-than-expected fiscal first-quarter earnings and lifted its full-year guidance. However, Five Below posted revenue of $726 million, compared with Wall Street's forecast of $728 million. PagerDuty reported adjusted earnings per share that beat Wall Street's estimates, but issued weaker-than-expected revenue guidance. The electric vehicle charging stock beat Wall Street's earnings expectations but shared light guidance for the current quarter that was below consensus estimates. SentinelOne — SentinelOne shares cratered 34% after the bell as the cybersecurity company cut its revenue guidance and fell short of Wall Street's revenue expectations in the most recent period.
Persons: MongoDB, Asana, Darla Mercado Organizations: Broadcom, Revenue Locations: San Diego , California, FactSet
Conventionally, nylon is mostly made from ingredients sourced from fossil fuels like coal, natural gas or crude oil. "It's been estimated that 8 to 10 percent of all human-associated nitrous oxide emissions come from this single industrial process" to make adipic acid, Wallace told CNBC. To make the nylon precursor used in the Lululemon shirts, Geno uses biological organisms instead of chemicals from fossil fuels. "Because nylon, like it or not, has a lot of good value," Reddy told CNBC. "Look at those first-generation replacement straws — they didn't work, and everybody's annoyed," Reddy told CNBC.
Lululemon purchased Mirror in 2020 for $500 million. An analyst said selling Mirror could eliminate a "distraction" for Lululemon. While Lululemon's Mirror business has struggled, its overall business remains strong. "As previously announced, we are shifting the focus of Lululemon Studio from a hardware-centric offering to one that is also focused on digital app-based services going forward. At an investor day last year, Lululemon rolled out a new plan for Mirror, including the launch of Lululemon Studio, a membership plan for its Mirror device.
Here are five stocks chosen by Wall Street's top analysts, according to TipRanks, a platform that ranks analysts based on their past performance. Rakesh holds the 94th position among more than 8,000 analysts followed on TipRanks. The analyst ranks 439th among more than 8,000 analysts followed on TipRanks. The analyst remains bullish on the stock and raised his price target to $134 from $128, as he continues to see a "meaningful upside." Santarelli holds the 27th position among more than 8,000 analysts on TipRanks.
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