William Blair analysts said the firm expects lululemon athletica (NASDAQ:LULU) to modestly beat first quarter guidance and consensus expectations when it reports earnings on June 1.
In a note on Wednesday, the analysts, who have an Outperform rating on the stock, said they expect project revenue growth of 20% and EPS growth of 36% on continued healthy momentum in stores and online.
“We project constant-dollar comps will increase about 13% to 14% against a rough 29% year-ago comparison, reflecting modestly positive brick-and-mortar comps and high-20% growth in e-commerce to 48% of sales (versus 45% in the year-ago period),” the analysts wrote.
William Blair believes healthy sales trends continued across all categories and regions, including accelerating trends in China due to a more normalized operating environment.
“Domestic in-store markdowns during the quarter were similar to the year-ago period, while online markdowns rose at a low-double-digit cadence (marking the lowest rate of year-over-year growth in online markdowns since 2021),” they concluded.
