The clock is ticking down to Lululemon Athletica’s (LULU) first-quarter earnings, which the yoga-where company is scheduled to will report on Thursday before the market open.
The past month has been relatively quiet for Lululemon, especially compared to the consumer "haterade" last year. One thing is for sure this time around: fans of the company continue to forgive, while analysts continue to find ways to like it–and that goes for the two analysts who weighed in today.
Up first: Howard Tubin of RBC. He acknowledged a recent stock sell off and called it a "unique opportunity to buy." Tubin writes:
We believe lululemon represents a unique and compelling growth story in the apparel retail space. With the bad news from 2013 now in the rear-view mirror and the shares meaningfully off their highs, we believe the entry point is compelling.
Tubin highlights also likes what he sees from Lululemon’s new products:
We did see some new prints, patterns, and product beginning to flow in. These subtle hints of newness came in the form of the “& Go” collection of active and casual wear, photo-real floral prints, and tuxedo striped crops. We believe the impact from new CPO Tara Poseley remains in the early stages, and we look towards the back half of 2014 to see her impact in full-force.
While Tubin forecasts in-line EPS of 32 cents, Matthew McClintock of Barclays expects Lululemon to beat by a penny. He explains why he’s bullish on Lululemon:
We view lululemon as a share gainer in the already quickly growing women's athletic apparel segment. In addition to other athletic and apparel and footwear brand companies, we look at high growth specialty retailers with similar growth attributes including: a strong square footage growth opportunity, solid consistent comp growth, and exposure to end markets with solid growth dynamics.
Shares of Lululemon gained 1.1% to $45.48 today.
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