Forecast Of The Day: Lululemon’s Direct-To-Consumer Operating Margin
What?
Trefis expects Lululemon’s (NASDAQ:LULU) direct-to-consumer (DTC) Operating Margin to increase from around 37% in 2020 to about 38% in 2021 and around 39% in 2022. DTC includes e-commerce channels and company-owned stores.
Why?
- Lululemon’s Stock Down 34% YTD, What’s Happening?
- Down 9% This Year, What’s Next For Lululemon’s Stock Past Q4 Results?
- Lululemon Stock Up 52% In Past Year. What Should You Expect Now?
- Will Lululemon Stock Trade Higher Post Q2?
- Will Lululemon Stock See Higher Levels Post Q1?
- Earnings Beat In The Cards For Lululemon Stock?
We expect margins to rise, driven by higher e-commerce sales and the introduction of new product categories.
So What?
However, we think that the projected growth in Lululemon’s revenues and margins is more than priced into the stock. We value LULU stock at $350 per share, about 14% below the current market price.
See Our Complete Analysis For Lululemon
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams