Lululemon (LULU.US) stock fell more than 5.0% despite the fact that retailer reported better than expected quarterly figures. The athletic apparel maker earned $1.16 per share for its latest quarter, compared to analysts’ expectations of 88 cents a share. Revenue of $1.12 billion also beat market forecasts of $1.02 billion. Sales rose 22% from a year ago, as customers sought to buy workout apparel during the pandemic. In North America, net revenue jumped 19%, boosted by its e-commerce business. Lululemon also provided upbeat guidance for the current quarter.
Lululemon (LULU.US) stock is trading lower during today's session despite the retailer reporting strong growth in sales. Price is currently testing major support zone at $349.50 which coincides with upward trendline and 50 SMA (green line). If sellers manage to break below, a bigger downward correction may start. Next support lies at $320.20. However if buyer swill manage to halt declines here, then another upward impulse towards $383.80 could be launched. Source: xStation5
