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On the corporate front, Lululemon Athletica reports fourth-quarter results after the bell. Wall Street expects EPS of $5.87 on revenue of $3.6 billion, both up over 11% year-over-year. The company pre-released stronger guidance in January, and analysts largely expect results to meet or exceed those revised targets. Brick-and-mortar sales are estimated to have grown in the low-20% range, while e-commerce contributions hover near 49% of total revenue.
Despite positive near-term expectations, concerns persist around Lululemon’s 2024 outlook. Foot traffic in February declined 7.7% year-over-year, lagging peers like Alo Yoga, raising caution about domestic momentum. Analysts are split on the outlook: some expect beatable, conservative full-year guidance, while others flag competitive headwinds, especially in North America, which accounts for 70% of LULU’s revenue base.
Market Forecast: Neutral-to-Bullish Short-Term Bias
While macro data and Fed commentary may introduce modest volatility, current expectations are balanced and unlikely to shift the broader trend unless significantly off-consensus.
For Lululemon, strong Q4 results could lift shares short-term, but forward guidance will be the key driver. A neutral-to-bullish bias is warranted in the near term, contingent on stable macro data and supportive corporate earnings delivery.
More Information in our Economic Calendar.
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