Lululemon (LULU) reversed last quarter’s disappointment by posting strong first-quarter results. The firm’s revenue increased by 10.5% Y/Y to $2.21 billion. Comparable sales grew by 6%.
For Q2, Lululemon will earn up to $2.97 a share. In 2024, revenue will grow by 11% to 12%. Investors who visit Lululemon stores will notice they still attract customers who would pay a premium price for yoga clothing.
Investors who bought LULU stock at $300 will enjoy a total return of over 10% today.
Victoria’s Secret (VSCO) continues to disappoint investors. The firm blamed a challenging and competitive environment for the weak Q1 results. However, the company lost its focus and targeted customers outside of its loyal base. This resulted in Q1 earnings at less than half of last year’s level at $0.12.
Five Below (FIVE) will open down by 15%. The value retailer posted revenue growing by 11.8% Y/Y to $811.86 million. For the year, 2024 revenue of between $3.79 billion to $3.87 billion assumes a 3% to 5% decrease in comparable sales.
FIVE stock is over-valued even before today’s decline. The retailer needs to offer better quality products for the merchandise it sells in the $5 range.
Watch Dollar Tree (DLTR) today. Shares fell by nearly 5% yesterday.
