Lululemon Athletica Inc. Stock Buy Recommendation Reiterated (LULU)
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- The revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 37.5%. 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 4.91, which clearly demonstrates the ability to cover short-term cash needs.
- LULULEMON ATHLETICA INC has improved earnings per share by 44.4% 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 ($1.84 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 47.7% when compared to the same quarter one year prior, rising from $38.79 million to $57.32 million.
- Net operating cash flow has increased to $49.72 million or 46.27% 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 -10.96%.
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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