Connect with us
DAPA PRIVACY · BLOCKDAG · ENCRYPTED Web Wallet webwallet.dapahe.com Zodiac Wallet Mobile · Android DapaPay dapapay.com · New! PRIVACY Homomorphic Encryption GENESIS SALE $0.12 / DAPA +50% Bonus · Tier 1 blockDAG · ElGamal · Rust

Crypto World

Lululemon (LULU) Stock: Is Now the Time to Buy Before Tuesday’s Earnings Report?

Published

on

LULU Stock Card

TLDR

  • Lululemon will release Q4 fiscal 2025 results after Tuesday’s closing bell on March 17.
  • Wall Street forecasts earnings per share of $4.78, representing a 22.2% year-over-year decrease, alongside revenue of $3.57 billion, down 1.1%.
  • Shares have plunged approximately 24% since the start of the year and more than 50% over the trailing twelve months.
  • Analysts maintain a collective Hold stance, with a mean price target of $205.53 — roughly 30% higher than the current trading price.
  • Chief Executive Calvin McDonald announced his departure, with the board currently seeking his successor.

As Lululemon approaches its Tuesday earnings announcement, the athleisure giant’s shares hover near multi-year lows. The stock has tumbled roughly 24% year-to-date and lost more than half its market value during the past year. Expectations are mixed as investors await quarterly results.


LULU Stock Card
Lululemon Athletica Inc., LULU

Wall Street analysts project fourth-quarter revenue will reach $3.57 billion, marking a 1.1% year-over-year contraction. This represents a stark contrast to the 12.7% revenue expansion the company delivered in the comparable period last year. Earnings per share are anticipated to land at $4.78, reflecting a 22.2% year-over-year decrease.

Management previously indicated that fourth-quarter performance could approach the upper boundary of their guidance range, citing robust holiday shopping activity, increased foot traffic at retail locations, and successful promotional campaigns including their Black Friday initiatives.

Recent earnings results across the broader apparel industry have been inconsistent. Tilly’s reported 5.3% revenue growth and exceeded analyst projections, with shares surging 46.4% following the announcement. Zumiez achieved 4.4% revenue growth but saw its stock decline 10.9% after reporting. The apparel sector broadly has retreated approximately 9.7% during the past month.

LULU has fallen short of Wall Street revenue projections on several occasions throughout the previous two years. Analyst estimates have remained relatively stable over the past 30 days, indicating expectations for in-line results rather than significant surprises.

Advertisement

Leadership Transition Underway

Chief Executive Calvin McDonald revealed in January his intention to depart the role he has held since 2018. He is scheduled to remain with the organization as a senior advisor until March 31 while the board conducts its search for his replacement.

Should the company unveil a new CEO appointment concurrent with earnings results, investor sentiment could improve. Major leadership transitions often provide an opportunity to recalibrate market expectations and generate renewed optimism.

Global Expansion Offers Growth Potential

While foot traffic at North American locations has decelerated and domestic growth projections have been reduced, Lululemon has aggressively expanded its international footprint — especially in China and Mexico — through strategic new store launches aimed at compensating for sluggish performance in its home market.

This international expansion initiative represents one of the company’s most promising growth catalysts in the current environment.

Advertisement

From a valuation perspective, LULU presently trades at a forward price-to-earnings ratio of approximately 12.1x, notably beneath the sector median of roughly 16x. This valuation discount indicates that much of the recent negative sentiment may already be reflected in the share price.

Broader economic challenges persist as potential obstacles. Tariff uncertainties, inflationary pressures, and conservative consumer spending patterns — particularly among budget-conscious shoppers — could impact quarterly performance. Additionally, competitive intensity within the athleisure category continues to escalate.

The Street’s consensus recommendation stands at Hold, derived from one Buy rating and 17 Hold ratings issued during the previous three months. The average analyst price target stands at $205.53, compared to the current market price near $158.

Lululemon is scheduled to report fourth-quarter results after Tuesday’s market close on March 17.

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Bitcoin (BTC) climbs as Iran conflict tests crypto’s safe-haven case, says Bernstein

Published

on

BTC long-term bull case remains, says Fabian Dori

Bitcoin’s recent strength during geopolitical uncertainty reflects a fundamental shift in the asset’s ownership structure, according to Wall Street broker Bernstein.

The cryptocurrency climbed roughly 7% last week, with ether (ETH) gaining about 9%, outperforming gold and global equity indices as markets reacted to escalating global conflict. The broker said the performance highlights how institutional ownership is reshaping the market.

“We believe the combination of Strategy’s treasury model and ETFs have transformed bitcoin’s ownership structure,” analysts led by Gautam Chhugani said in the Monday report.

Strategy, which the analysts described as acting like a “bitcoin central bank of last resort,” has continued buying through the downturn. The firm extended its streak of weekly purchases, acquiring about $1.57 billion worth of BTC, according to a Monday filing.

Advertisement

The company, led by Executive Chairman Michael Saylor, bought 22,337 bitcoin at an average price of $70,194 each, bringing its total holdings to 761,068 BTC acquired at an average cost of $75,696 per coin.

Strategy has also expanded its preferred equity financing strategy through the STRC product, which offers investors high-yield income linked to the Secured Overnight Financing Rate (SOFR) and has generated rising trading volumes. The additional liquidity helps fund more bitcoin purchases through at-the-market offerings.

Meanwhile, spot bitcoin exchange-traded funds (ETFs) have attracted about $2.1 billion in inflows over the past three weeks, bringing ETF ownership to roughly 6.1% of total bitcoin supply. The analysts said these vehicles are increasingly drawing allocations from wealth managers, pension funds and sovereign investors.

Retail investors have been net sellers in recent months, but long-term holders remain dominant. About 60% of bitcoin supply has not moved for more than a year, a signal that many investors continue to treat the asset as a long-term store of value, the report said.

Advertisement

Bitcoin’s recent outperformance during geopolitical stress has also revived debate about its role as “digital gold.” While the token lagged the precious metal for much of the past year, its gains during the latest bout of global uncertainty have prompted some analysts to argue the asset is beginning to behave more like a geopolitical hedge, though the comparison remains contested.

For equity investors, Bernstein added that Strategy (MSTR) remains a high-beta way to gain exposure to bitcoin’s upside, currently trading at about a 14% discount to its bitcoin net asset value on a basic share basis.

The largest cryptocurrency was trading 4.4% higher around $73,900 at publication time. Ether, the second-largest crypto by market capitalization was up 8.4% at $2,273.

Read more: CEO of crypto investment firm Keyrock says bitcoin is undervalued, entering ‘transition year’

Advertisement

Source link

Continue Reading

Crypto World

Strategy Buys 22,337 Bitcoin, Holdings Rise to 761,068 BTC

Published

on

Strategy Buys 22,337 Bitcoin, Holdings Rise to 761,068 BTC

Michael Saylor’s Strategy, the world’s largest public holder of Bitcoin, continued aggressively stacking Bitcoin last week, bringing the company’s total reserves to above 760,000 BTC.

Strategy acquired 22,337 Bitcoin (BTC) for $1.57 billion last week, according to a US Securities and Exchange Commission filing on Monday.

The purchase ranks among the five largest Bitcoin acquisitions by Strategy on record, following a massive 17,994 Bitcoin buy for $1.28 billion a week earlier. 

Source: SEC

The purchase was made at an average price of $70,194 per Bitcoin, below the company’s overall average acquisition price of $75,696, Strategy said. Bitcoin averaged a price of $70,571 for the week of March 9-15, based on daily closing prices.

The acquisition brings its holdings to 761,068 BTC, acquired for a total cost of roughly $57.61 billion, the company said.

Advertisement

STRC now the most liquid preferred stock in the market, Saylor says

The purchase came amid Strategy selling record amounts of its perpetual preferred equity, Stretch (STRC), after easing its sales rules on March 9.

“This was the first week Strategy could run the STRC ATM in extended hours with a second broker,” Bitcoin Quant founder Rohan Hirani noted in a post on X.

Related: Strive allocates $50M of treasury to Strategy’s STRC preferred stock

According to STRC Live, the stock saw a record week last week, with 10,767 BTC estimated to be bought across four active days.

Advertisement
Source: Michael Saylor

According to the filing, Strategy sold 11.9 million STRC shares for $1.18 billion during the week, with net proceeds accounting for 75% of the entire purchase. The company also sold 2.8 million Common A shares (MSTR), generating $396 million.

Source: SEC

With Strategy now holding 761,068 BTC, the company would need to acquire 238,932 BTC to reach 1 million, an average of about 5,700 BTC per week over the remaining 42 weeks of 2026.

Magazine: Bitcoin’s ‘narrative vacuum,’ Ethereum now inevitable: Trade Secrets