Can Lululemon Stock Pop 20% Again After The Company Reports Earnings?

Joe Terranova, chief market strategist at Virtus Investment Partners, expects Lululemon Athletica Inc LULU stock to react differently on its earnings announcement than it did last time.

The last time Lululemon announced quarterly results, the company reported an earnings beat and raised guidance causing the stock to surge more than 20% to all-time highs.

Related Link: Lululemon Athletica's Earnings: A Preview

Terranova told CNBC he expects the report to be a bit more complicated this time around.

About 33% of Lululemon's inventory is produced in Vietnam, he said, adding that there were supply chain disruptions during the quarter. Terranova expects in-store revenue to be better than e-commerce revenue as a result of the reopening during the summer months.

"Overall, if you want exposure to athletic and casual apparel, there is no better name than Lululemon," Terranova said. "I remain a long-term holder."

Lululemon is scheduled to announce its second-quarter financial results after the market closes today.

LULU Price Action: Lululemon has traded as high as $417.85 and as low as $269.28 over a 52-week period.

The stock is down 1.59% at $380.33 at the time of publication.

Photo: heng jiguai from Pixabay.