Lululemon earnings — What to know in markets Thursday

Wed, Sep 4, 2019, 4:44 PM

Lululemon has been crushing it in recent quarters, and analysts expect the strength to have continued in the second quarter. Lululemon’s second-quarter results come on the heels of a blowout first quarter in which same-store sales surged 16%. Those strong sales were driven by a 35% jump in digital sales, and an 8% rise in in-store sales.

Analysts are estimating adjusted earnings of 89 cents per share on $845.30 million in revenue for the second quarter, according to data compiled by Bloomberg.

The athleisure brand has been pushing more aggressively into international markets, grown its menswear line, and most recently, opened a giant 20,000-square-foot store in Chicago with multiple yoga studios and a juice bar, among other amenities. According to alternative-data compiled by Thinknum, job hiring is up 23% this year at Lululemon, and that’s a good thing for the company. The stock is also on fire, jumping 49% and sitting 7% below its all-time high reached earlier this year.

The options market is currently implying about an 11% move in either direction following the results.

Meanwhile, DocuSign (DOCU), Zoom Video Communications (ZM) and PagerDuty (PD) will also release quarterly results after the market close Thursday.

Notable economic data set to be released Thursday include the following:

8:15 a.m. ET: ADP Employment Change, August (146,000 expected, 156,000 in July)

8:30 a.m. ET: Initial Jobless Claims, week ended August 31 (215,000 expected, 215,000 prior)
8:30 a.m. ET: Continuing Claims, week ended August 24 (1.688 million expected, 1.698 million prior)
9:45 a.m. ET: Bloomberg consumer comfort
9:45 a.m. ET: Markit US Services PMI, August final (51.0 expected, 50.9 in July)
9:45 a.m. ET: Markit US Composite PMI, August final (50.9 in July)
10 a.m. ET: Factory Orders, July (1.0% expected, 0.6% in June)
10 a.m. ET: Durable Goods Orders, July final (2.1% expected, 2.1% in June); Durable Goods excluding Transportation, July final (-0.4% expected, -0.4% in June)
10 a.m. ET: ISM Non-Manufacturing Index, August (54.0 expected, 53.7 in July)