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Lululemon stock falls on raised guidance

Key Points

  • Sports apparel maker Lululemon raised its fourth-quarter 2023 EPS and revenue guidance on stronger-than-expected holiday sales, but shares triggered a sell-the-news reaction.
  • Lululemon continued its margin expansion, raising Q4 2023 gross margin forecasts of 6% to 58.7%, up from 58.3% to 58.6%.
  • Lululemon is down 5.6% year-to-date (YTD) and trades at 39X forward earnings with a 3.24% short interest.
  • 5 stocks we like better than Lululemon Athletica.

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Jea Yu
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Jea Yu

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Lululemon Athletica (LULU)
3.7774 of 5 stars
$379.42+1.6%N/A27.39Moderate Buy$377.63
Under Armour (UAA)
3.4475 of 5 stars
$8.62+2.4%N/A-287.24Hold$9.28
NIKE (NKE)
4.6515 of 5 stars
$76.94-0.2%2.08%22.05Moderate Buy$89.77
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