Jun 7, 2024
Hot Stocks 🔥

Lululemon’s Q1 Earnings Encourage Investors | Nemo

Name of opportunity: 👀

Lululemon Athletica Inc

Turning it around: ↩️

Lululemon’s stock overall has fallen 30.16% over the last 6 months - but since the company announced its Q1 earnings, the stock has risen 4.86% over the past week. 

The first quarter of 2024 had the following differences from the first quarter of 2023, among other changes: net revenue increased 10% to $2.2 billion, and gross profit increased 11% to $1.3 billion. These metrics indicate that Lululemon is in good financial health. International growth was particularly strong, with international net revenue increasing by 35%. 

The company’s business plan states that new focuses will be e-commerce and menswear - with a continued focus on those growing international markets as well.

How hot is this investment opportunity? 🔥🔥🔥

Analysts see good upside potential in Lululemon, because of its positive Q1 earnings report. The Q1 report revealed a new earnings per share or EPS figure of $2.54, which is higher than analysts predicted it would be. Lululemon have also increased their stock buyback scheme, which is an indication that the company feels confident and is keen to increase value for shareholders. 

Analysts think the stock may increase in value from $326.00 to $401.69 in the next 12 months. If you invested $1000, you might profit $247.47, as this is a percentage increase of 24.75%. 

Every occasion, from yoga class to brunch: 🧘

Lululemon’s most famous product is definitely their yoga pants or leggings, which the company says have recently become more popular with younger women, expanding their customer base. While the company’s athletic wear is designed for yoga and sports, it has become popular casual wear for different occasions too. As of 2024, Lululemon owns 711 stores, and supplies its clothes to thousands of other stores. This Canadian company was founded in 1998 initially selling women’s yoga pants. It now sells all kinds of athletic gear including footwear for men and women. 

Which neme?: 🔍

‘Fashion, ‘This Week’s Earnings’

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Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.