Lululemon earnings point towards ‘freight or supply chain issues’

Lululemon earnings point towards ‘freight or supply chain issues’: Analyst

JJK Research Associates Janet Joseph Kloppenburg joins Yahoo Finance Live to discuss Lululemon's latest earnings report, the designer brand's operating margins and forward outlook, and the brand's pricing after the Black Friday shopping event.

Lululemon earnings point towards ‘freight or supply chain issues’: Analyst
Microsoft acquisition of Activision remains ‘less than 50-50’ chance amid FTC lawsuit: Analyst
Recession concerns and interest rates are ‘lethal combination’ for vehicle demand: Economist
Apple: Foxconn manufacturers urge Chinese officials to ease COVID policies
Duckhorn Portfolio ‘continues to outpace’ wine industry slowdowns: CEO
Stocks moving in after hours: Lululemon, Costco, Docusign, Chewy, RH
Costco has ‘quite a bit of room’ to hike prices, membership fees: Analyst
Cathie Wood speaks on the Fed, energy, ARK ETF, crypto, Elon Musk

25:36
Stocks consolidate gains ahead of Thursday’s bell
Stocks in focus: Microsoft, Activision-Blizzard, Chinese stocks, GameStop, Ciena Corporation
FDA authorizes Omicron booster shots for children as young as six months old
House passes marriage equality bill
Gen X, Boomers choosing to retire in current housing may ‘exacerbate inventory challenges’: Expert

Lululemon earnings point towards ‘freight or supply chain issues’: Analyst

Fri, December 9, 2022, 12:27 PM

Video Transcript

[AUDIO LOGO]

DAVE BRIGGS: All right, an earnings alert. Now shares of Lululemon. Check them out. Down 9 and 1/2 plus percent after reporting earnings. Yahoo Finance's Josh Schafer with us now to break down the numbers. Josh, what is moving the stock so far down?

JOSH SCHAFER: Yeah, Dave, it looks like right now, so you've got a revenue beat for Lululemon. The estimate was at $1.6 billion versus an estimate of $1.82 billion. And the diluted earnings per share beat the estimate as well at $2 versus an estimate of $1.97. But I think really what you're looking at here for what's bringing the stock down, is the fourth quarter guidance for EPS.

So Lulus guiding $4.20 to $4.30. Well, the Street was expecting $4.29. You can see that's a pretty big range there. Didn't quite hit it there. Now they did have full year revenue numbers coming in as well. That came in at $7.94 billion in a range to $7.99 billion. That was the high end of Lulus previous guidance. And similar their full year EPS guidance. That came in at $9.87 to $9.97. That's also higher than Lulu had previously guided.

And I will read you just a little nugget here, and we don't have the call yet, but CEO Calvin McDonald said that they're pleased with their early holiday season performance. Expect to hear a little bit more about that on the call. Obviously, the holiday season will include Q4, Dave, so will be interesting to see.

One other note too that I forgot for you. I think it was 85% inventories up year over year again. So another story there. That's the same as last quarter. Still may be a problem for them, it wasn't really last quarter, but we'll have to see.

DAVE BRIGGS: The inventory story continued to spread all over the retail sector. For more on the earnings, we're joined by Janet Joseph Kloppenburg of JJK Research Associates. Nice to see you. Your reaction to this report?

Lululemon earnings point towards ‘freight or supply chain issues’: Analyst