Lululemon Athletica is Expected to Update Q4 Sales and EPS Guidance Next Week
<p>Wedbush analysts provided a review on <a href='https://financialmodelingprep.com/financial-summary/LULU'>Lululemon Athletica Inc. (NASDAQ:LULU)</a>, expecting the company to update Q4 sales and EPS guidance next week (ahead of the ICR conference), and believe this to be a positive catalyst for the stock. </p>
<p>The company almost always raises Q4 guidance at ICR, with last year being a one-off exception due to the omicron variant surge in Dec/Jan. Store productivity trends also suggest an upside to Q4 guidance, and the analysts’ checks of Lululemon stores during the holiday season uncovered crowded stores, long lines, and minimal discounting. </p>
<p>While COVID disrupted store-traffic trends for all retailers, the company faced a somewhat unique headwind given the fact that their stores are small, so "metering" of store traffic coupled with consumers being wary of entering a highly-crowded store caused a slow recovery of store productivity.</p>
<p>All in, the analysts raised their Q4 sales forecast by approximately 250bps, which takes their Q4/2022/2023 EPS forecasts to $4.36/$10.02/$12.20 (from $4.24/$9.90/$12.06 prior).</p>

NASDAQ:LULU