Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Lululemon Athletica inc. (LULU), Oxford Industries, Inc. (OXM): 5 Reasons to Worry About Next Week

Page 1 of 2

The economy is showing signs of fumbling the recovery.

For starters, mortgage rates are starting to creep higher. The 30-year rate is closing in on 4%, making it the highest level in a year. As cheap financing dries up, where do you think housing prices and the purchase of other big-ticket items will go?

The news isn’t just iffy on the macro level. There are also more than a few companies that aren’t pulling their own weight in this supposed economic recovery.

Lululemon Athletica inc. (NASDAQ:LULU)

There are still plenty of names that aren’t growing their earnings. Let’s go over a few of the companies that are expected to go the wrong way on the bottom line next week.

Company Latest Quarter EPS (estimated) Year-Ago Quarter EPS
lululemon athletica (NASDAQ:LULU) $0.30 $0.32
Oxford Industries (NYSE:OXM) $0.78 $1.12
Synutra (NASDAQ:SYUT) $0.02 $0.13
Smithfield Foods (NYSE:SFD) $0.43 $0.43
KMG Chemicals (NYSE:KMG) $0.22 $0.33

Source: Thomson Reuters.

Clearing the table
Let’s start at the top with Lululemon Athletica inc. (NASDAQ:LULU). This may be a surprise. Isn’t this the upscale yoga apparel retailer that’s been posting monster growth in recent years? Yes, that’s all true, but we can’t forget the Luon pants fiasco that erupted in mid-March. The chain had to pull stock of its black Luon pants because the sheerness made them practically see-through. It was an embarrassing episode that took place midway through the company’s fiscal quarter.

The chain only recently began restocking all but one of the styles that were pulled, and early on the retailer warned that it would sting the bottom line. Analysts see healthy revenue growth of 19%, but they see profitability dipping slightly.

Oxford Industries, Inc. (NYSE:OXM) is also in the apparel business, but it didn’t have any see-through scandals to work through. Oxford Industries, Inc. (NYSE:OXM) is the company behind Tommy Bahama tropical shirts, Lilly Pulitzer dresses, and other branded clothing items.

Analysts see a small uptick in revenue at Oxford Industries, Inc. (NYSE:OXM), but they also see profitability dropping sharply. If the pros seem pessimistic in holding out for just $0.78 a share on Tuesday, keep in mind that these same analysts overestimated Oxford Industries, Inc. (NYSE:OXM)’s profitability in the two previous quarters.

Synutra International, Inc. (NASDAQ:SYUT) is a leading seller of infant formula in China. Naturally, this would seem to be a big business given China’s place as the world’s most populous nation. However, Wall Street sees revenue falling 7% for the quarter.

It gets worse. If you think that Oxford Industries, Inc. (NYSE:OXM) is on a mean streak after coming up short relative to expectations in the two previous quarters, Synutra International, Inc. (NASDAQ:SYUT) missed analyst profit targets every single quarter last year.

Page 1 of 2

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!