Strong Q1 expected from Lululemon on continued consumer demand for specialty apparel
Robert Way/iStock Editorial via Getty Images

Lululemon (NASDAQ:LULU) is scheduled to announce Q1 earnings results on Thursday, June 2nd, after market close.
The consensus EPS Estimate is $1.43 (+23.3% Y/Y) and the consensus Revenue Estimate is $1.55B (+26.0% Y/Y).
Over the last 2 years, LULU has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 18 upward revisions and 2 downward. Revenue estimates have seen 16 upward revisions and 0 downward.
Athletic wear and lifestyle apparel maker LULU is expected to deliver another strong quarter.
Consumer demand for specialty apparel retailers such as LULU and its peers V.F. Corp (VFC), Tapestry (TPR) and Burberry (OTCPK:BURBY) has remained strong, helping to offset the impact of supply chain issues and inflation.
LULU stock gained nearly 10% in late March after reporting a healthy 32% jump in comparable store sales for Q4 2021.
VFC, TPR and BURBY have also recently delivered strong Q1 results and have seen their shares gain.
On Thursday, LULU stock was upgraded to overweight from equal weight at Morgan Stanley, on what the firm called a compelling opportunity to buy a compounding retail growth story at a discounted valuation compared to history marks.
Last month, B. Riley analyst Susan Anderson lowered LULU's price target to $440 from $487. However, Anderson said that specialty retailers with exposure to fashion will likely have a chance to outperform in Q1 as channel checks continued to show consumers gravitating towards fashion like dresses, workwear and occasion apparel with limited promotions. 
Read a recent analysis on LULU from SA contributor Cavenagh Research: Lululemon: Premium Brand, Premium Priced

The SA Quant rating and SA Authors rating on LULU is hold, while the Wall St. average rating is buy.