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Lululemon Shareholders Approve Executive Pay, Elect Directors

EditorFrank DeMatteo
Published 06/12/2024, 04:22 PM
© Reuters.
LULU
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In a recent 8-K filing, lululemon athletica (NASDAQ:LULU) inc. disclosed the outcomes of its 2024 Annual Meeting of Shareholders, which took place on June 6, 2024. Shareholders voted on several key proposals, including the election of board members, ratification of the company's independent auditor, and approval of executive compensation.

The election of directors resulted in all six nominees being elected. Four Class II directors, Calvin McDonald, Isabel Mahe, Martha Morfitt, and Emily White, were elected to a three-year term, while Class I directors Shane Grant and Teri List will continue to serve their remaining terms. Each director received more affirmative votes than votes cast against.

Additionally, the shareholders ratified the appointment of PricewaterhouseCoopers LLP as lululemon's independent registered public accounting firm for the fiscal year ending February 2, 2025. The advisory proposal on the compensation of named executive officers also passed, with a majority of votes in favor.

However, a shareholder proposal requesting a report on the impact of the production and sale of animal-derived products did not garner enough support and was not approved.

The filing, which serves as a formal record of the proceedings and outcomes of the shareholder meeting, was signed by Meghan Frank, lululemon's Chief Financial Officer, and dated today, Wednesday, June 12, 2024. This information is based on a press release statement from lululemon athletica inc.

In other recent news, Lululemon Athletica Inc. reported first-quarter earnings per share (EPS) of $2.54, exceeding consensus estimates, driven by a 40% rise in international sales and a 2% increase in U.S. sales. The company also expanded its share repurchase program by an additional $1 billion, indicating a strong financial position. Various financial analysts have adjusted their stance on Lululemon following these results. Citi maintained a Buy rating on Lululemon, with a steady price target of $415. KeyBanc revised its price target for Lululemon, reducing it to $415 from $515, while maintaining an Overweight rating. BofA Securities raised its price target for Lululemon to $440, maintaining a Buy rating, while BMO Capital cut its share price target to $384, maintaining a Market Perform rating. BTIG maintained a Buy rating on Lululemon, reaffirming a $425 price target. These adjustments reflect the recent developments in the company's financial performance and future expectations.

InvestingPro Insights

Following the recent shareholder meeting of lululemon athletica inc., investors may be seeking additional context on the company's financial health and market position. According to InvestingPro data, lululemon holds a market capitalization of $38.7 billion, with a P/E ratio of 24.77, reflecting investor sentiment on its earnings potential. Notably, the company's P/E ratio has adjusted to 23.71 over the last twelve months as of Q1 2023, and its PEG ratio during the same period stands at 0.38, suggesting a potentially favorable growth trajectory relative to earnings.

InvestingPro Tips highlight lululemon's solid balance sheet, as the company holds more cash than debt, and its liquid assets exceed short-term obligations. This financial stability is a key consideration for shareholders, especially after the company's share price has experienced significant volatility, trading near its 52-week low and falling over 31% in the last three months. Despite these challenges, analysts predict lululemon will be profitable this year, and the company has been profitable over the last twelve months, which may reassure investors of its ongoing operational strength.

To gain deeper insights and access even more InvestingPro Tips related to lululemon's financial performance and market outlook, interested readers can visit InvestingPro for a comprehensive analysis. Additionally, users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 12 InvestingPro Tips for lululemon, offering a broader perspective on investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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