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Stock Market & Financial Investment News

News Breaks
March 26, 2014
12:29 EDTLULUEarnings Preview: lululemon reporting Q4 results after cutting outlook
Lululemon Athletica (LULU) is scheduled to report fourth quarter earnings before the market open on Thursday, March 27, with a conference call scheduled for 9:00 am ET. Lululemon is a designer and retailer of yoga-inspired apparel operating primarily in North America and Australia. EXPECTATIONS: Analysts are looking for earnings per share of 72c on revenue of $515.11M, according to First Call. The consensus range for EPS is 70c-73c on revenue of $508.1M-$521.44M. LAST QUARTER: Lululemon reported third quarter EPS of 45c against estimates for 41c on revenue of $379.9M against estimates for $376.2M; same-store sales increased 5% and direct-to-consumer revenue increased 37% to $62M. NEWS: In January, lululemon cut its Q4 outlook due to decelerating traffic, and said it had seen traffic and sales trends decelerate "meaningfully" in January. The company's updated Q4 guidance is EPS of 71c-78c on revenue of $513M-$518M vs. prior guidance of 78c-80c and $535M-$540M, respectively. The company forecast Q4 comparable sales in the negative low to mid single digits, below its previous guidance of flat comparable store sales on a constant basis. Lululemon commented that "At the end 2013, lululemon is starting to see the results of the significant investments it made throughout this past year to strengthen and enhance its back-of-house product operations structure. The company said it is confident that its new leadership will help build on this 'stronger foundation to execute our long-term growth strategies.'" At the ICR Xchange Conference in January, the company said it is taking next year "seriously" and plans to do everything it can to make conversation "more positive." Lone Pine Capital liquidated its stake in the company. STREET RESEARCH: According to TheStreet.com's Stephanie Link, lululemon has the potential to be a Wall Street "darling" once again as the many problems the company had last year are likely to be fixed with new management. Stifel expects lululemon's FY14 guidance to miss analysts' consensus estimates, but expects the company to return to positive comps by the second half of fiscal year 2014. The company said in a court filing related to a shareholder lawsuit that the company promptly addressed quality control problems with its luon pants as they became apparent and updated investors in real time. During the quarter, the stock's price target was lowered at Deustsche Bank, Credit Suisse and JPMorgan. Shares were upgraded at Oppenheimer and RBC Capital, and downgraded at Janney Capital and ISI Group. PRICE ACTION: Over the last three months, lululemon shares are down almost 18%. Year-to-date, shares are down about 17%. Ahead of tomorrow's earnings, shares are up over 2% in mid-day trading.
News For LULU From The Last 14 Days
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September 30, 2014
10:59 EDTLULUlululemon management to meet with Oppenheimer
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06:05 EDTLULUStocks with implied volatility below IV index mean; LULU NKE
Stocks with implied volatility below IV index mean; lululemon (LULU) 31, Nike (NKE) 18 according to iVolatility.
September 29, 2014
06:08 EDTLULUStocks with implied volatility below IV index mean; LULU HD
Stocks with implied volatility below IV index mean; lululemon (LULU) 31, Home Depot (HD) 16 according to iVolatility.
September 26, 2014
06:09 EDTLULUStocks with implied volatility below IV index mean; LULU HD
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September 19, 2014
07:40 EDTLULUVF Corp. upgraded to Buy, could target lululemon, says KeyBanc
As previously reported, KeyBanc upgraded VF Corp (VFC) to Buy from Hold with an $80 price target. The firm cited momentum at its Timberland brand, VF's strong brand portfolio, and the potential for another large M&A transaction. The analyst said VF Corp. is well positioned to complete another large deal and could target lululemon (LULU). KeyBanc believes lululemon's quality issues, forecasting and store operational challenges play into VF Corp.'s strengths and that such an acquisition would be 10c accretive initially and 80c accretive over time.
September 17, 2014
11:02 EDTLULUOptions with decreasing implied volatility
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September 16, 2014
10:37 EDTLULUOptions with decreasing implied volatility
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