Lululemon retreated early Friday after its Q2 results late Thursday. Shares looked poised to break a downtrend in premarket trade. Meanwhile, Birkenstock tumbled Thursday after the sandals maker came up short of earnings and revenue estimates.
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Lululemon
Lululemon (LULU) late Thursday reported a 17.5% increase in earnings to $3.15 per share, beating FactSet expectations of $2.93 per share. Revenue rose 7% to $2.37 billion, which was just short of estimates for $2.4 billion.
Earnings and revenue growth both slowed over the last two quarters leading up to results.
Comparable increased 2%, but fell short of views for 5.9% growth.
Lululemon guided Q3 revenue to range from $2.34 billion to $2.365 billion, representing 6% to 7% growth, with earnings between $2.68 and $2.73 per share. FactSet analysts expect third-quarter earnings of $2.70 per share adjusted on $2.4 billion in sales.
Lululemon’s full-year sales guidance of $10.38 billion to $10.48 billion also came up short of analysts expectations for $10.6 billion. The company sees full-year earnings of $13.95 to $14.15 per share, while FactSet estimates adjusted earnings of $14.01 per share.
LULU stock reversed higher for a slight gain Friday after sliding in early trade. Shares climbed 4.6% premarket.
During premarket trade, Lululemon looked to break a downtrend and was working on a move back above its 10-week moving average.
Shares plummeted 49.3% this year.
Birkenstock Earnings
London-based Birkenstock Holdings (BIRK) reported Q3 earnings of 55 cents per share, up from 46 cents per share last year, according to FactSet. Revenue increased 22% in dollar terms to $629 million, which marked a quarterly record.
FactSet expected the London-based company to report earnings of 57 cents per share on $632 million in sales.
Birkenstock reported a 23% increase in B2B revenue driven by strong wholesale demand. Direct-to-consumer revenue rose 14%.
Birkenstock maintained its 2024 outlook for 19% revenue growth on a reported basis, and a 20% increase on a constant currency basis.
The footwear maker also kept its medium-term goal of hitting a gross profit margin of 60% and an adjusted EBITDA margin of over 30%.
Birkenstock Stock
BIRK stock carved 16.2% lower Thursday. Shares fell another 2% Friday.
Prior to the report, Birkenstock shares reversed from a breakout and fell below a 61.83 buy point for a flat base. Thursday’s move pushed BIRK back below the stock’s 50-day moving average. A move of more than 7% to 8% below the 61.83 buy point triggered the automatic stop-loss rule.
Shares are now up just 2.4% on the year. BIRK stock went public at $46 per share on Oct. 11, 2023.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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