Lululemon Athletica Inc LULU shares are trading higher by 2.15% to $387.15 Friday morning. Shares of footwear and athletic apparel companies are trading higher in sympathy with Nike Inc, which reported first-quarter results.
Why It Matters
Lululemon is a direct competitor of Nike in the athletic apparel and activewear market. When Nike reports strong earnings, it suggests that consumers are still interested in purchasing athletic apparel and related products. Lululemon can benefit from this trend as investors may anticipate that it, too, will experience increased demand for its products.
Lululemon has built a strong and aspirational brand known for high-quality activewear and yoga apparel. Positive news from Nike can reflect positively on Lululemon's brand perception, as investors may see it as a company with a similar appeal and ability to generate sales.
What Happened With Nike Earnings?
Nike said fiscal first-quarter revenue increased 2% year-over-year to $12.939 billion, which missed the consensus estimate of $12.98 billion.
The athletic footwear and apparel company reported quarterly earnings of 94 cents per share, which beat analyst estimates of 74 cents per share...Read More
According to data from Benzinga Pro, Lululemon has a 52-week high of $406.94 and a 52-week low of $277.50.
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