Lululemon Athletica Inc. Stock Buy Recommendation Reiterated (LULU)
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- The revenue growth came in higher than the industry average of 19.2%. Since the same quarter one year prior, revenues rose by 33.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LULU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.01, which clearly demonstrates the ability to cover short-term cash needs.
- LULULEMON ATHLETICA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LULULEMON ATHLETICA INC increased its bottom line by earning $1.27 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.27).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 49.1% when compared to the same quarter one year prior, rising from $38.38 million to $57.22 million.
- Net operating cash flow has significantly increased by 242.85% to $47.57 million when compared to the same quarter last year. In addition, LULULEMON ATHLETICA INC has also vastly surpassed the industry average cash flow growth rate of 40.37%.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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