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What's Next for Lululemon (LULU) Stock?

On this episode of the Full-Court Finance podcast, Associate Stock Strategist Ben Rains breaks down Lululemon's recent Q3 financial results and dives into the athleisure firm's future.

Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down Lululemon’s LULU recent third quarter financial results. The episode then takes a look at Lululemon’s future as it expands in Asia and rolls out new offerings in order to reach its 2020 goals.

Right off the bat, shares of LULU plummeted Friday after the company reported its Q3 earnings results after the closing bell last Thursday. The company’s adjusted quarterly earnings surged and topped our Zacks Consensus Estimate. Lululemon’s top-line growth also surpassed estimates. Plus, the yoga apparel firm’s comparable store sales surged and its e-commerce comps skyrocketed.

The company sees its newer outwear division as a “material comp driver for the quarter” across both its men's and women's segments. Lululemon currently sells men’s and women’s parkas for as much as $600 as it tries to compete against Canada Goose GOOS, V.F. Corporation’s VFC The North Face, and other high-end brands. Lulu’s is also testing out a new loyalty program as retailers from Nordstrom JWN to Target TGT try to navigate an Amazon AMZN-obsessed retail age.

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Meanwhile, Lululemon hopes to break into the self-care market where giants such as Walgreens WBA have partnered with trendy, subscription-based services in order to boost sales and attract new customers. Maybe more importantly, Lululemon is actively expanding its presence in key Asian regions.

With that said, Lululemon appears poised to continue to challenge industry giants Nike NKE, Adidas ADDYY, Under Armour UAA, and Gap GPS as it fights to reach its own lofty, 2020 growth projections. But, Lululemon’s stock price has started to fade recently for a variety of reasons.

As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
The Gap, Inc. (GPS) : Free Stock Analysis Report
 
lululemon athletica inc. (LULU) : Free Stock Analysis Report
 
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
 
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
 
Adidas AG (ADDYY) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
Under Armour, Inc. (UAA) : Free Stock Analysis Report
 
V.F. Corporation (VFC) : Free Stock Analysis Report
 
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Zacks Investment Research