Lululemon's Earnings Growth: What to Expect (Q2 2024)

Lululemon Athletica Inc (NASDAQ:LULU) is scheduled to release its Q2 2024 earnings today after the bell. The company's performance has been a topic of interest, especially given the fluctuating revenue and earnings estimates over the past few months.

Revenue and Earnings Estimates

For Q2 2024, analysts expect Lululemon to report revenue of $2.41 billion, with earnings projected at $2.95 per share.

The full-year estimates for 2024 suggest revenue of $10.64 billion and earnings of $14.18 per share. Interestingly, while the revenue estimate for 2024 has been adjusted downward over the past 90 days—from $10.76 billion to $10.64 billion—the earnings estimate has seen an increase, moving from $13.30 per share to $14.18 per share.

The trend continues into 2025, where revenue estimates have also been lowered, from $11.82 billion to $11.57 billion. Meanwhile, earnings estimates for 2025 have risen from $14.93 per share to $15.53 per share. This shift suggests that while revenue growth may be slowing, the company is finding ways to improve profitability.

Recent Performance and Market Reaction

In the previous quarter, ending on April 30, 2024, Lululemon reported revenue of $2.21 billion, slightly beating the analyst consensus of $2.19 billion. The company also reported earnings of $2.54 per share, which was significantly higher than the expected $2.27 per share. Despite these positive results, the stock remained flat in the days following the earnings release.

Lululemon's upcoming earnings report is anticipated with great interest. The company’s ability to consistently beat revenue and earnings expectations in recent quarters position it as a strong player in the market. Investors will be watching closely to see if Lululemon can continue this trend and whether the stock can reach the optimistic price targets set by analysts.