Lululemon earnings disappoint, stock trading at a P/E of 10 in trading
Lululemon reported same-store sales up by 1% and net income down by 38%. The company lowered its earnings outlook, and the stock has fallen by more than 5% over the past 60 years, currently standing at a P/E of 10.
Lululemon reported earnings on 6月 10日. The company said same-store sales increased by 1%. Over the same period, net income fell 38% year over year. The company lowered its earnings outlook for the year along with its quarterly results. The company filing includes the guidance reduction. The market reacted after the guidance was lowered. The stock has fallen by more than 5% over the past 60 years. During this period, the stock traded below its previous levels. The stock movement affected investor sentiment. The current stock price is trading at a P/E of 10 times earnings, at a P/E of 10. For comparison, the average P/E of the S&P 500 is 26. P/E, or the price-to-earnings ratio, indicates how many times earnings the stock price represents. The market has pointed to intensifying competition. Uncertainty over new CEO Heidi O'Neill's transition plan has also been raised. The company is attempting to restore its performance in this environment. Some analysts assess that the current stock price appears undervalued. Others, however, have raised concerns that it could be a value trap. Additional information is expected from next quarter's results and the guidance update.
Sources: The Motley Fool
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