Lululemon Holiday Season Sales

Today is Wednesday, March 29, 2023.

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Lululemon Holiday Season Sales

A strong holiday sales quarter coupled with a strong forecast lifted shares of Lululemon Athletica (Nasdaq: LULU) by 13.12% in after-hours trading on Tuesday.

Financials: Lululemon reported earnings of $4.40 per share in the past quarter and revenue of $2.8 billion; both were better than expected.

Outlook: Lululemon expects earnings per share in the current quarter to be between $1.93 to $2.00, and revenue to grow by 18%. Both are positive projections.

But: Inventories at the end of 2022 grew by 50%. As a result, the gross margin and operating margin decreased year-over-year.

Stock Price: The stock is down about 6% in the last 12 months, but is up 3% in the last 30 days.

Final Thoughts: These strong results erased any previous fears that investors had. Even though Lululemon does have some macroeconomic concerns, and the inventory levels need to be addressed, the value of the stock is still good.


Notable Earnings Today: RH (NYSE: RH), Paychex (Nasdaq: PAYX), Cintas (Nasdaq: CTAS), Concentrix (Nasdaq: CNXC), Bluebird bio (Nasdaq: BLUE), Sprinklr (NYSE: CXM), Conn's (Nasdaq: CONN), Xos (Nasdaq: XOS), UniFirst (NYSE: UNF), Planet Labs (NYSE: PL), Kingsoft Cloud Holdings (Nasdaq: KC), H.B. Fuller (NYSE: FUL), Minim (Nasdaq: MINM), Semtech (Nasdaq: SMTC), Redwire (NYSE: RDW), Franklin Covey (NYSE: FC), Sharecare (Nasdaq: SHCR), Dyadic International (Nasdaq: DYAI), Stronghold Digital Mining (Nasdaq: SDIG), Verint Systems (Nasdaq: VRNT), Sportsman's Warehouse (Nasdaq: SPWH).

Notable IPOs Today: Hongli Group Inc. Ordinary Shares (Nasdaq: HLP), Trailblazer Merger Corporation I Unit (Nasdaq: TBMCU), Altamira Therapeutics Ltd. Warrant (Nasdaq: CYTOW).

Notable Equity Crowdfunding Campaigns Ending Today: Canopy (StartEngine), Brooklyn Gin (Republic).

Notable Economic Events Today: Pending Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

Micron’s Biggest Loss Ever

Photo by Maxence Pira / Unsplash

Micron Technology (Nasdaq: MU) ticked up by 1.05% in after-hours trading on Tuesday after posting mixed financial results.

Financials: Micron reported a loss of $1.91 per share in the past quarter and revenue of $3.69 billion; both were below estimates. It was Micron’s biggest loss ever.

Details: During what the company called “a challenging market environment,” Micron’s sales dropped. The company wrote off $1.43 billion in inventory. Cash on hand dropped from $943 million to $343 million.

But: Micron says that inventories are getting better and it is confident in long-term demand.

Final Thoughts: Down 27% in the past 12 months, Micron’s struggles reflect the challenges of other companies in the chip space.

Cal-Maine Surges Thanks to Egg Prices

Cal-Maine Foods (NASDAQ: CALM) jumped by 3.74% in after-hours trading on Tuesday after the company reported strong financial results.

Financials: Cal-Maine reported earnings of $6.62 per share in the past quarter and revenue of $997.5 million; both were better than expected.

Final Thoughts: Cal-Maine benefited from past higher egg prices. But today, egg price increases are starting to level off.

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