Lululemon stock is highly stretched

Athlete Manufacturer of footwear and footwear LULUEMON (NASDAQ: LULU) The stock has rebounded after lobbying earnings estimates. Iconic Athletic Clothing Company has resumed growth after an impressive fiscal year Q4 2021 earnings report that included 2022 full-year top and bottom directions and a $ 1 billion stock buyback program. Lululemon also entered the footwear department on March 22, 2022, with initial response dramatically exceeding expectations. The company is still grappling with global supply chain problems and improved logistics costs, but inventory and pricing have been remarkably well managed during these disruptive times. Lululemon’s core seasonal products make up about 45% of their inventory, enabling the company to ensure the right level of top-line growth throughout the year. Inflationary pressures will also call for a price increase in 2022 for a small part of its style. The company hinted at further details of its five-year outlook on its upcoming Analysts Day. Wise investors looking for exposure in this top athletic game may see opportunistic pullbacks before Analyst’s Day. contributor / – Marketbit

Fiscal Q4 2021 earnings release

On March 29, 2021, Lululemon released its financial quarter-quarter 2021 results for the quarter ended January 2022. The company reported earnings per share (EPS) of $ 3.37, missing analyst estimates of $ 0.10 for $ 3.27. Revenue grew 23.1% year-on-year (YOY) $ 2.13 billion Meeting analysts estimate $ 2.13 billion. Total comparative sales increased by 22% and sales trends in the same store increased by 32% whereas direct to the customer increased by 17%. The company has approved a বাই 1 billion stock buyback. Calvin MacDonald, CEO of Lululemon, commented, “2021 was another successful year for Lululemon, which speaks to our brand’s sustainable strength and ability to deliver sustainable growth across the business. We have achieved the growth target of three. It was particularly impressive in the challenging macro background. We are entering the new year from a strong position, which we will build to continue deliveries to our guests and shareholders in the years to come. “

In the opposite direction

The company looks at PS 1.38 to $ 1.43 vs. 28 1.28 consensus analyst estimates on revenue of $ 1.525 billion to $ 1.550 billion in fiscal year 2022 EPS of অনু 1.38 to 43 1.43. Fully-year FY 2022 EPS ranges from 15 9.15 to 30 9.30 vs. 0 9.05 to $ 7.490 billion to $ 7.615 billion versus $ 7.24 billion, according to analysts’ consensus estimates on revenue.

Conference Call Takeaways

CEO MacDonald praised the Q4 results, with 31% consistent EPS growth and 22% growth in the two-year CAGR, with the Power of Three Growth Plan delivering more growth than targeted. He restored their top line guidance 24% to 26% growth and 19% to 23% bottom line consistent EPS growth in the first quarter of 2022. He has teased that they will provide a five-year outlook on their Analyst Day in the next few weeks. . Athletic clothing is becoming stronger than overall clothing as consumers are engaged in both fitness and everyday life with a versatile line of products. The company is benefiting from both physical location as well as digital channels. To offset supply chain tensions and improved freight costs, the company has a core lineup or seasonal product that accounts for 45% of its inventory. It carries minimal markdown risk and enables it to meet customer demand throughout the year. Lululemon plans to raise selective prices on a fraction of its products to offset inflationary pressures. Commenting on the footwear launch in March, she said, “With over 4 years of development and over 20 years of designing and manufacturing performance gear for women, we have released our first three styles of technical athletic shoes and a performance slide. The first of our four styles, Blissfeel, went on sale on March 22 in North America and mainland China, and will launch in the UK soon. The initial guest response at Blissfeel has dramatically exceeded our expectations, not to mention the incredible reviews from several publications and guests, and we need to share more about our footwear on Analyst Day.

Lululemon stock is highly stretched

LULU opportunistic pullback level

Using rifle charts in weekly and daily time frames provides an accurate view of the landscape for LULU stocks. Weekly rifle chart triggers a mini inverse sin breakdown on rejection near 404.86 Fibonacci (Five) layer Shares fell to $ 277.66 Fib before staging a rally in and through earnings. The weekly 5-Period Moving Average (MA) is trying to increase the crossover through the 15-period MA to trigger a breakout on the weekly stochastic mini-sin through the 20-band. The weekly 50-period MA is still a resistance at $ 274.28 because the stock has returned below that level. Weekly Upper Bollinger Bands (BBs) sit at $ 494.31. The Daily Rifle chart has a 200-period MA resistance at $ 383.85 that overlaps the daily upper BB to $ 284.70 and captures the earnings spike. The daily 5-period MA is rising at $ 357.07 as the 15-period MA is higher at $ 324.45. The daily 50-period MA is rising slightly to $ 319.84. Daily stochastic ups and downs from 90-band rejection. Daily

Lower Market Structure (MSL) Purchase triggers a breakout through 312.43. Daily low BBs sit at $ 318.23. Wise investors can see the opportunistic pullback levels at $ 354.32, $ 338.10, $ 326.99 fib, $ 312.43 daily MSL trigger, $ 294.53 fib, $ 285.43 fib, and $ 277.66 fib level. Upward Trajectory from $ 404.86 Fib level to $ 470.11 price level.

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