NEW YORK (TheStreet) -- J.P. Morgan reduced its target price on Lululemon Athletica (LULU - Get Report) to $58, reduced its estimates and set an "overweight" rating. The firm noted lower expected comp sales.
The stock was up 1.96% to $48.56 at 9:49 a.m. on Monday.
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- LULU's revenue growth has slightly outpaced the industry average of 14.2%. Since the same quarter one year prior, revenues rose by 20.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 6.48, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for LULULEMON ATHLETICA INC is rather high; currently it is at 57.26%. 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 17.40% compares favorably to the industry average.
- Net operating cash flow has significantly decreased to $23.88 million or 51.98% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- LULU has underperformed the S&P 500 Index, declining 23.71% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: LULU Ratings Report