Lululemon Athletica (NASDAQ:LULU), an athletic apparel company yesterday reported their first quarter fiscal 2017 financial results. Lululemon reported first quarter profits of $31.2 million.
Lululemon reported first quarter adjusted earnings of $0.32 per share which beat analyst expectations of $0.28 per share. Lululemon reported first quarter revenues of $520.3 million which beat analyst expectations of $512.7 million.
Lululemon Athletica CEO’s Comments
Laurent Potdevin, CEO, lululemon, commented: “I’m excited to see the positive trends that materialized late in Q1 continuing into Q2. Our current outlook for the remainder of 2017 is strong, and I’m energized by the growth strategies taking shape. I’m also confident in our plans to restructure ivivva and believe they are the best means to optimize this part of the business.”
Mr. Potdevin added: “From our cadence of product innovation, to our enhanced digital experience, and first-ever global brand campaign, we have never felt more deeply connected to our guest or better positioned to expand our collective. We remain laser focused on owning our position as the global brand defining an active, mindful lifestyle.” Business Wire
LULU Technical Analysis
LULU opened trading yesterday at $48.27 which was exactly the same as the previous day’s trading close. Shares closed trading yesterday at $48.67 and spiked up after market to $56.50, equivalent to a 16% increase from the closing price. Taking a look at the daily chart we can see the last time LULU traded above these levels we have to go back to March 29th when it traded at $66.30.
Taking a closer look at the daily chart we can see that before the spike up LULU had been in an overall downward trend dating back to December 12th, 2016 when it traded at $69.71. LULU has a float of 106.92 million shares and traded 1.47 times the normal daily trading volume on Thursday.
For trading purposes, I would like to see LULU open trading on Friday above $54.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.35 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
lululemon athletica inc., an athletic apparel company, together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer.
The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga and running; other sweaty pursuits; and athletic wear for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats, and water bottles.
The company sells its products through a chain of company-operated stores; outlets and warehouse sales; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; license and supply arrangements; and showrooms, as well as directly to consumer through lululemon.com and ivivva.com e-commerce sites.
As of January 29, 2017, it operated 406 company-operated stores under the lululemon and ivivva brands in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Hong Kong, Singapore, South Korea, Germany, Puerto Rico, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.