On Monday, Barclays adjusted its outlook on Lululemon Athletica Inc. (NASDAQ:LULU), reducing the price target to $546 from the previous $610 while retaining an Overweight rating on the stock. The adjustment follows Lululemon's financial report for the fourth quarter of fiscal year 2023, which showed a strong performance exceeding market expectations.
Lululemon reported adjusted earnings per share (EPS) of $5.29, surpassing the consensus estimate of $5.00. The company's sales also topped expectations, coming in at $3.21 billion against the predicted $3.19 billion. These results indicate a robust end to the fiscal year for the athletic apparel retailer.
Despite the impressive fourth-quarter results, the forecast for fiscal year 2024 presented a less optimistic growth trajectory, particularly in the Americas. The company's guidance suggested growth rates that fell below their usual performance benchmarks. This outlook is partly due to a slower start in the first quarter of 2024, which has been softer than anticipated.
The analyst's remarks highlight the mixed financial picture for Lululemon, with a strong finish to the previous fiscal year but cautionary expectations for the year ahead. The change in price target reflects the analyst's response to the company's provided guidance and the early trends observed in the current fiscal year.
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