Lululemon CEO Confident in Continuous Digital Growth | Financial Buzz

Lululemon CEO Confident in Continuous Digital Growth

Lululemon Athletica (NASDAQ:LULU) CEO said he anticipates the company’s recent sales increase to continue even after the arrival of COVID-19 vaccines. The company’s shares might hit a new record high of USD404, an over 13% jump from the previous price.

“We don’t see any dramatic impact in the reduction of the momentum in the business … there are a lot of drivers of growth within the marketplace,” he told Jim Cramer in a “Mad Money” interview. “I think there are some lasting [pandemic] inflection points across the guests.”

Last week, the company revealed its third quarter net revenue surged 22% to USD1.1 Billion. Additionally, adjusted earnings amounted to USD1.16 per share, higher than Wall Street’s anticipated USD0.88 a share.

“While overall this (Q3) was a solid beat with better FQ4 top-line guidance, the stock is flat to slightly down in the after-market, likely due to elevated expectations more than anything else. In our view, Lululemon Athletica (LULU) is successfully taking share and is poised to continue doing so in FQ4,” said Camilo Lyon, equity analyst at BTIG.

“As we look to next year, we see LULU benefiting from the reopening of its retail stores of which many were closed for effectively half of 2020 as well as from continued secular tailwinds both in category (athletic) and channel (digital), while prepping for category extensions(footwear coming in 2023) on which LULU is well positioned to optimize. We reiterate our BUY rating and raise our price target to $453,” Lyon added.

Lululemon brought in over USD2.67 Billion in revenue throughout its three fiscal quarters. Despite physical stores 36% decrease in revenue, direct-to-consumer revenue has grown twice as large within the last nine months.

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!