Lululemon Athletica Inc. Stock Buy Recommendation Reiterated (LULU)
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- The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 30.7%. 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 4.47, which clearly demonstrates the ability to cover short-term cash needs.
- LULULEMON ATHLETICA INC has improved earnings per share by 47.0% 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 $1.85 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($1.97 versus $1.85).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Textiles, Apparel & Luxury Goods industry average. The net income increased by 48.8% when compared to the same quarter one year prior, rising from $73.52 million to $109.38 million.
- The gross profit margin for LULULEMON ATHLETICA INC is rather high; currently it is at 59.00%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.52% significantly outperformed against the industry average.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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