Will Lululemon shrug off macro headwinds to post another earnings beat in Q2?
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Lululemon (NASDAQ:LULU) is scheduled to announce Q2 results on Thursday, Sept. 1, after market close.
Consensus EPS estimate is $1.85 (+12.1% Y/Y) and consensus revenue estimate is $1.77B (+22.1% Y/Y).
Over the last 2 years, LULU has beaten EPS and revenue estimates 88% of the time.
Over the last 3 months, EPS estimates have seen 23 upward revisions and 1 downward. Revenue estimates have seen 17 upward revisions and 4 downward.
KeyBanc included LULU in its list of top retail picks, saying it is a "best-in-class example of effective omnichannel execution". 
Jefferies downgraded LULU to Underperform amid weakening post-pandemic demand as the retailer may find it difficult to enter new categories without a strong roster of ambassadors.
LULU, which targets higher end customers, may not be hit by inflationary pressures as much as other retailers due to pricing power. 
Shares of LULU rose after the retailer posted Q1 earnings beat and raised its full year forecast. It projected Q2 adj. EPS of $1.82-$1.87 and revenue of $1.75B-$1.78B.
Morgan Stanley said LULU was one of the few softline retailers to raise guidance despite macro and supply chain volatility. BTIG highlighted LULU's ability to execute under varied macro environments and its ample liquidity. Bernstein changed its bearish stance on LULU as its valuation was more attractive. 
SA contributor JR Research believes LULU's current valuation is not attractive enough, given slower growth dynamics, and rated the stock Hold.
Shares of LULU, which fell 22.9% YTD, underperformed the Dow Jones Personal & Household Goods index but outperformed the Dow Jones Clothing & Accessories index in the last 1 year.