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Stock Market & Financial Investment News

News Breaks
August 8, 2014
10:32 EDTLULUlululemon advances after founder sells shares to PE investor
Shares of yoga apparel maker lululemon (LULU) are climbing after the company's founder agreed to sell half of his stake. However, research firm Jefferies wrote that the company's inappropriate strategy is likely to keep its margins under pressure. WHAT'S NEW: lululemon founder Chip Wilson agreed to sell about half of his stake in the company, representing nearly 14% of its total shares, to private equity firm Advent International, the company reported last night. Wilson will receive about $845M for the shares, and Advent will obtain two seats on luluemon's board. BACKGROUND: Wilson had said before lululemon's annual meeting in June that he would vote against re-electing the company's board because he thought it was too focused on short-term issues. The founder then hired Goldman Sachs as a financial adviser. Last year, after lululemon had to recall some of its pants because they were too shear, Wilson blamed the problem on the shape of some women's bodies. He resigned his position as Chairman of lululemon's board after the statement caused controversy. ANALYST REACTION: In a note to investors today, Jefferies analyst Christian Buss wrote that the sale of Wilson's shares is positive for lululemon, as it will enable the company's board to cease being distracted by bickering and focus on developing and carrying out a strategic plan. However, Buss still believes that the company is incorrectly looking to expand its products to new markets, categories and demographic groups. Such a strategy is inappropriate, given the significant challenges the company has faced with its core products and customers, the analyst contended. Although lululemon's brand is still strong, its margins are likely to remain under pressure as long as it continues its current strategy and its earnings growth is likely to be limited as a result, Buss forecast. He kept a $38 price target and Neutral rating on the stock. PRICE ACTION: In early trading, lululemon climbed 84c, or 2.2%, to $39.87.
News For LULU From The Last 14 Days
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March 26, 2015
10:19 EDTLULUlululemon remains an under-owened growth story, says JPMorgan
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09:58 EDTLULULululemon says spring inventory may be affected by port issues
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09:38 EDTLULULululemon sees FY15 gross margins delevering from FY14
Sees approx. impact of $65M to revenue for FY15 from forex, 60bp impact to gross margin offset by $30M reduction in SG&A. net impact to earnings of approx. 4c per share vs. FY14. Says February was externally impacted by weather, product delivery delays. Sees weather having approximate $3M impact to sales in February, early March due to store closures, lower traffic in areas impacted by storms. Says has not been able to avoid delays in ocean shipment times into West Coast ports. Sees delays extending into Q2. Sees 14 new Q1 store openings in NA. Sees Q1 gross margin 49%-50%. Says expects merchandise margins to stabilize. Expects SG&A to delever slightly y/y. Expects to open 60 corporate-owned stores in FY15. Sees FY15 gross margins delevering from FY14, with merchandise margins stabilizing. Sees forex, weather, other factors having 9c to EPS for FY15. Sees FY15 operating margin deleveraging from FY14. Says targeting long-term SSS growth in mid-single digits.
09:28 EDTLULULululemon says port slowdown may impact Q1 results
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09:23 EDTLULUOn The Fly: Pre-market Movers
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05:36 EDTLULUlululemon sees FY15 EPS $1.85-$1.90, consensus $2.06
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05:35 EDTLULUlululemon sees Q1 EPS 31c-33c, consensus 39c
Sees Q1 revenue $413M-$418M, consensus $442.01M. Sees Q1 comparable sales up in low single digits on a constant dollar basis.
05:34 EDTLULUlululemon reports Q4 total comparable sales up 8%
Total comparable sales, which includes comparable store sales and direct to consumer, increased by 8% for the fourth quarter on a constant dollar basis. Comparable store sales for the fourth quarter increased by 5% on a constant dollar basis and direct to consumer net revenue increased 20% on a constant dollar basis. Direct to consumer net revenue increased 17% to $114.5 million, or 19.0% of total company net revenue, in the fourth quarter of fiscal 2014, an increase from 18.8% of total company net revenue in the fourth quarter of fiscal 2013.
05:34 EDTLULUlululemon reports Q4 EPS 78c, consensus 73c
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March 25, 2015
15:34 EDTLULUNotable companies reporting before tomorrow's open
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15:34 EDTLULUlululemon technical commentary ahead of results
The shares rebounded sharply at the end of last year but have paused in the last several weeks prior to earnings. The range of price has been bound by $60 at the low and $68 at the high. These bounds may help understand where price may go following earnings and outlook. If the news is positive, a first test of resistance would come at $64.96, the 50-day moving average. A breakout above the moving average would be a technical positive, with the 52-week high at $68.99 as next resistance. An extreme positive move on the upside could take shares to the $70 area. It was from that price point in December 2013 that the stock began its fall. If the news is bearish, support levels to watch below $60 would be at $58, $55.48, and $53.39.
12:30 EDTLULUEarnings Preview: Lululemon sees Q4 EPS 71c-73c on revenue $595M-$600M
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07:28 EDTLULUOptions expected to be active
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06:00 EDTLULUStocks with implied volatility above IV index mean; LULU BBRY
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March 23, 2015
13:50 EDTLULUAnalysts take opposite sides on lululemon before Q4 report
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08:58 EDTLULUlululemon should be bought ahead of earnings on Thursday, says Cowen
Cowen said the risk/reward is good for lululemon ahead of its earnings report on Thursday and recommends buying shares ahead of the event. The firm cited improved product, controlled markdowns, and potential online traffic gains. Cowen reiterated its Outperform rating and $70 price target on lululemon shares.
07:42 EDTLULUlululemon subject to sharp pullback if momentum pauses, says Canaccord
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07:36 EDTLULUlululemon volatility elevated into Q4 and outlook
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March 19, 2015
07:16 EDTLULUlululemon volatility elevated into Q4 and outlook
lululemon March weekly call option implied volatility is at 74, April is at 46, June is at 38, September is at 36; compared to its 26-week average of 36 according to Track Data, suggesting large near term price movement into the expected release of Q4 on March 26.
March 13, 2015
08:18 EDTLULUlululemon could have over $3B in sales by 2017, says Barclays
Barclays believes lululemon could have over $3B in sales by 2017 and said the men's segment drives upside. The analyst believes upcoming guidance could be conservative and would use any weakness as a buying opportunity as it expects solid comps, lower input costs, and reduced markdowns to drive upside. Shares are Overweight rated.
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