Lululemon Athletica Inc. Stock Buy Recommendation Reiterated (LULU)
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- The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 21.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant 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 6.46, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 57.56% to $25.14 million when compared to the same quarter last year. In addition, LULULEMON ATHLETICA INC has also modestly surpassed the industry average cash flow growth rate of 56.17%.
- LULULEMON ATHLETICA INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($2.00 versus $1.85).
- The gross profit margin for LULULEMON ATHLETICA INC is rather high; currently it is at 52.80%. Regardless of LULU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LULU's net profit margin of 13.67% compares favorably to the industry average.
--Written by a member of TheStreet Ratings Staff. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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