Lululemon Athletica
Stock Pops Higher!

It’s A Real Lulu Of A Report!

Lululemon Athletica inc. (NASDAQ:LULU)

Option Calls

Provides 100% Profit!

by Ian Harvey

December 08, 2017


Lululemon Athletica inc. (NASDAQ:LULU)

Here is an update of Lululemon Athletica’s winning options call trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, December 04, 2017 -- in the article “Earnings Predictions for the Week Beginning December 04, 2017”; producing excellent potential profits of 100% within a couple of days of executing the trade!


The Recommendation……

…….from “Earnings Predictions for the Week Beginning December 04, 2017”.

The Details……..

Lululemon Athletica inc. (NASDAQ:LULU) – this athletic goods retailer will report its third-quarter numbers after the market closes. Analysts expect earnings of $0.52 per share, versus $0.47 during the same period last year; on revenue of $611.68 million and the Earnings Whisper number is $0.55 per share.

Shares have trended steadily higher since mid-summer on the back of two straight better than expected reports. Enthusiasm has returned to the stock, and with both Foot Locker (FL) and Hibbett Sports (HIBB) already posting strong numbers this earnings season, the outlook is favorable for Lululemon’s results.

Overall earnings estimates have been revised higher since the company's last earnings release.

LULU was recently trading at $67.06, down $5.64 from its 12-month high and $19.80 above its 12-month low. Technical indicators for LULU are bullish and the stock is in a strong upward trend.

The stock has recent support above $63.50 and recent resistance below $68.60.

Of the 25 analysts who cover the stock, 12 rate it a “strong buy”, two rate it a “buy”, 10 rate it a “hold”, and one rates it a “strong sell”.

The Trade……..

Option trade to consider: Buy the LULU DEC 15 2017 70.000 CALL at approximately $2.20.

The Report………

Lululemon Athletica just released its third quarter fiscal 2017 financial results after the bell, posting diluted earnings of 43 cents per share and revenues of $619 million.

The company saw revenues figures of $619 million, surpassing the consensus estimate of $611.47 million and growing 14%.

Total comparable sales surged 8%, while direct-to-consumer net revenue increased 26%.

Gross margin was 52.0%, an increase of 90 basis points compared to the third quarter of fiscal 2016. 

For Q4, Lulu expects revenues in the range of $870 million to $885 million, and diluted EPS in the range of $1.18 to $1.21.

"As we start the holiday season, I'm energized by our momentum and we are increasing guidance to reflect this performance. I'm grateful for the enthusiasm I see every day across our collective as we remain on our path to delivering $4 billion in revenue in 2020,” said CEO Laurent Potdevin.

End Result……..

Shares of Lululemon Athletica surged over 7% on Thursday after the athleisure power posted strong Q3 earnings. This move helps show investors that retail and apparel is not doomed, especially if you look in the right places.

Lululemon stock hit a new 52-week intraday trading high of $73.84 per share after it reported an 8% climb in third-quarter comparable store sales. On top of that, the Canadian apparel company grew its direct-to-consumer sales by 26%.

The Profit……..

So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 100% within a couple of days.



As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.

Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

What To Do Now…….

If you interested in being part of this profitable action just click here……

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

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