While the consumer economy struggled since last year due to blistering inflation (along with the subsequent hawkish monetary policy response), athletic apparel retailer Lululemon (LULU) appears no worse for wear. Following Tuesday’s strong fiscal fourth-quarter earnings report, LULU stock soared during the midweek session, eventually closing up nearly 13%. Still, not every expert is convinced that LULU will continue on its northbound trajectory.
Nevertheless, for the time being, the narrative presents an encouraging backdrop. First, the retailer surprised market observers with its resiliency. According to Zacks Equity Research, Lululemon posted adjusted earnings per share of $4.40, representing an increase of 30.6% on a year-over-year basis. Additionally, the figure handily beat Wall Street’s consensus estimate of $4.25.
