Boston, MA 06/11/2014 (wallstreetpr) – Lululemon Athletica inc. (NASDAQ:LULU) will be releasing its quarterly report tomorrow, on Thursday, June 12, 2014. The yoga apparel maker’s outlook for the quarter is in the range of $377 million to $382 million, with earnings per share in between 31 cents and 33 cents, in line with the earnings of 32 cents per share in the prior year.
Analysts have a target of $0.32 per share for the company with revenue target of $381.2 million. Lululemon Athletica inc. (NASDAQ:LULU) has earned a Zacks Rank #4 with a positive Earnings Expected Surprise Prediction of 3.13%. Zacks Consensus Estimate for the stock is 32 cents and analysts at Zacks do not believe that the stock will beat earnings estimate.
2013 Decline
Lululemon Athletica inc. (NASDAQ:LULU), which ranks fifth among retailers who recorded highest sales per sq. ft. off retail space in the last 12 months period, is still struggling to recover the March 2013 downfall. The company’s recall of its Luon yoga pants, which were too sheer, had caused it a $2 billion loss in market value. The event affected 17% of the company’s inventory and shares continued to decline, failing to reassume their June 2013 high.
However, hopes began to reshape after the company’s then Chief Product Officer, Sheree Waterson, and its CEO, Christine Day, stepped down after the recall. The position was taken over by Laurent Potdevin at the end of 2013.
Potential Target
Analysts even feel Lululemon Athletica inc. (NASDAQ:LULU) to be a soft target for takeover, mostly because of the cheap share prices. While the Globe and Mail also showed agreement with the speculations, Canaccord Genuity’s managing director, Camilo Lyon, named likely suitors for the company in one of the reports. The names highlighted were adidas AG (ADR) (OCTMKTS:ADDYY) and VF Corp (NYSE:VFC). However, what, according to analysts, can keep the company from being taken over is its strong and loyal customer- company as well as employee- company relationships.
