Investors are warming up to Lululemon (LULU) again. Despite posting weaker-than-expected sales and lowering its full-year guidance, profit margins are better.
Lululemon reported a $3.15 a share profit. Gross profit margin increased by 80 bps to 59.6%. LULU stock will trade higher because the market priced in its guidance cut already. Revenue growth was mixed. Sales increased in Canada, rising by 11%, but was flat in the U.S. International revenue grew by 30%.
In the technology sector, watch Marvell Technology (MRVL) today. The firm posted a 5.2% Y/Y drop in revenue, to $1.27 billion. For Q3/2025, Marvell expects an adjusted EPS of $0.40 and revenue of $1.45 billion. These are higher than the market expected.
Cautious investors should avoid MRVL stock. Revenue is not growing Y/Y and losses are high at a GAAP measure. Marvell posted a GAAP net loss of $193.3 million. It added back $154.9 million in stock-based compensation and $275.7 million in amortization to report the $266.2 million in non-GAAP income.
Okta lost 17.6% on Thursday. The firm produced solid results but the markets expected more. Until the company re-accelerates its free cash flow, OKTA stock may underperform.
Okta needs to firm up its internal security. It is working with its customers to achieve that. It will not enjoy business stability until the economy is less uncertain.
