Wednesday Morning Market Highlights

Shares of Lululemon fall on earnings

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Omar Venerio
Mar 31, 2021
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U.S. markets

U.S. market indexes were in the green on Wednesday morning, with stocks hitting record levels. The Dow gained 0.07% to 33,089, the S&P 500 index rose 0.72% to 3,987 and the Nasdaq Composite Index was up 1.83% to 13,283.

Gainers

Losers

Global markets

The main European stock markets traded mostly in the red. The U.K.'s FTSE 100 slid 0.86%, Germany's Dax fell 0.01%, France's CAC 40 swelled 0.34% and Spain's Ibex 35 was down 0.18%.

In Asia, Japan's Nikkei 225 fell 0.86%, India's BSE Sensex declined 1.25%, Hong Kong's Hang Seng retreated 0.70% and China's Shanghai Composite was down 0.43%.

Lululemon Athletica releases earnings report

Shares of Lululemon Athletica Inc. (

LULU, Financial) fell more than 4% on Wednesday morning to change hands at $302.10 after the company posted its fiscal fourth-quarter results.

Revenue grew 23.6% year over year to $1.73 billion, beating estimates by $70 million. It posted earnings of $2.58 per share, also topping analysts' projections by 9 cents.

Chief Financial Officer Meghan Frank had the following to say:

"We pulled forward investments in our direct-to-consumer channel, completed our first acquisition, and tightly managed expenses while also supporting ourpeople. These measures contributed to our strong fourthquarter results, including growing revenue by 24%, and are helping fuel our even stronger top-line growthprojections for 2021."

Moreover, the gross margin rose 60 basis points to 58.6%. But the adjusted operating margin decreased by 290 basis points to 26.9%.

Looking toward the first quarter, the company expects earnings in the range of 81 cents to 85 cents per share and revenue in the range of $1.1 billion to 1.13 billion.

Lululemon shares have retreated 15% since the beginning of the year versus the S&P 500's gain of 7.4%.

During the fourth quarter of 2020,

Joel Greenblatt (Trades, Portfolio) reduced his holding by 77% to 972 shares.

Disclosure: The author holds no positions in any stocks mentioned.

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Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.