Skip to main content

NEW YORK (TheStreet) -- Lululemon Athletica (LULU) - Get lululemon athletica inc. Report  shares closed Tuesday's trading session up 1.09% to $61.18 on heavy trading volume ahead of the yoga apparel maker's fourth quarter 2015 financial results due out on Wednesday before the market opens.

Wall Street is looking for earnings of 80 cents a share on revenue of $693.38 million for the recent period. 

A year ago, the company earned 78 cents a share on revenue of $602.49 million. 

It appears that the company's underlying business is robust, given strong same-store sales results over the past three quarters, which were up 6%, 11% and 9% respectively, Sterne Agee CRT said.

The firm, which has a "buy" rating on the stock with a $68 price target, described the company as the "premium player in the activewear space."

Similarly, Baird Research analysts noted, "Lululemon remains a favorite growth pick based on a healthy category backup, improved product innovation, and numerous margin tailwinds."

Scroll to Continue

TheStreet Recommends

However, Deutsche Bank is wary about the brand's ability to re-establish 20%+ margins, MarketWatch reports. 

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C+.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LULU

Image placeholder title