Money & Markets Week Ahead for the week of September 6, 2021: Financial markets are closed Monday, but there are still a few things to put on your calendar.
We’ll still be busy on Money & Markets. I want to preview some of our upcoming content that you won’t want to miss. I also let you know what to expect from Lululemon Athletica’s earnings, and what one report will tell us about the post-COVID-19 job market.
Coming Up on Money & Markets
Here’s a sneak peek at some of the Money & Markets content you can expect in the week ahead.
Monday: It’s a holiday for financial markets and for our team. But we’re trying something new. Keep an eye on your inbox for an email detailing our first contest. It’s a chance for you to win some Money & Markets gear, and I’ll give you one hint: Brush up on your Green Zone Ratings stock research skills here.
Tuesday: Green Zone Fortunes co-editor Charles Sizemore has your retirement on his mind. Big Social Security news dropped last week, and Charles has some tips on how to make sure your nest egg is in a good spot going forward.
Thursday: Research analyst Matt Clark loves to talk cannabis stocks on our YouTube channel. You’ll have a chance to ask him any questions about the cannabis sector in his live chat on Thursday. Get your questions ready and join Matt at 4 p.m. Eastern.
Deep Dive: Lululemon Earnings
We are beyond the height of earnings season, but there are still some companies of note reporting quarterly numbers in the coming days.
Lululemon Athletica Inc. (Nasdaq: LULU) reports earnings on Wednesday.
The popular athletic and leisure clothing company became a pandemic darling as people worked and worked out from home. LULU’s share price has risen 135% since its March 2020 lows.
And that success has translated into a series of earnings and revenue beats.
During the last Lululemon earnings call for the quarter ending April 2021, it reported a $1.16 increase in earnings per share (EPS), 27.5% higher than analyst’s expectations.
Looking back, Lululemon has recorded earnings beats in nine of the last 10 quarters, with its only blemish occurring during the beginning of the COVID-19 pandemic in spring 2020.
Lululemon’s revenue suffered a significant decline at the beginning of the pandemic, but through the latter quarters of 2020, its sales rebounded nicely — nearly doubling from the second quarter of 2020 to the fourth quarter.
In its fiscal 2021 first quarter, Lululemon reported that online sales accounted for 44% of its topline revenue compared to 54% in the same quarter a year ago — adding to a 55% year-over-year increase in total revenue as brick-and-mortar locations reopened.
The skinny: Analysts are forecasting $1.18 EPS growth and $1.33 billion in revenue for LULU’s fiscal second quarter for 2021, and I think its set to beat those numbers again.
Companies that pivoted to online sales during the pandemic have thrived. We’ve seen it with traditional retailers like Walmart and Target, and it’s the same deal for smaller companies like Lululemon.
As consumers wrestle with the delta variant of COVID-19, it will be interesting to see how this trend plays out as the holiday season approaches.
Data Dump: U.S. JOLTs Job Openings
A healthy job market equates to a healthy economy.
The Job Openings and Labor Turnover Survey (JOLTs) provides insights into the state of the job market, and the Bureau of Labor Statistics will release July’s survey results on Thursday.
JOLTs uses three criteria to define a job opening: the job exists, the position could start within 30 days, and the business is actively recruiting for that position. The JOLTs survey also reports on hires and separations (layoffs, quits, etc.), so it’s a fairly wide view of the job market.
There were 10.1 million job openings at the end of June, a series high.
Job Openings Are Plentiful
Hires in June also increased by 4.6% to 6.7 million, with increases in retail, state and local government, education, and durable goods manufacturing. Separations also increased slightly to 5.6 million.
All told, for the 12 months ending in June, there was a net employment gain of 6.9 million.
The skinny: Economists are forecasting 9.28 million job openings for the month of July. That’s well below June’s numbers, but I think it’s an easy mark to beat.
In the coming months, this data should reflect the impacts of the COVID-19 delta variant. Federal unemployment benefits established by the CARE Act in 2020 expire on Monday as well.
Earnings Reports
To finish off the Money & Markets Week Ahead, here’s a look at some of the key earnings reports due out this week:
Monday
Uxin Ltd. (Nasdaq: UXIN)
Agraflora Organics International Inc. (OTC: AGFAF)
Tuesday
Caseys General Stores Inc. (Nasdaq: CASY)
Dada Nexus Ltd. (Nasdaq: DADA)
Wednesday
Lululemon Athletica Inc. (Nasdaq: LULU)
GameStop Corp. (NYSE: GME)
RH (NYSE: RH)
Thursday
Sun Hung Kai Properties Ltd. (OTC: SUHJY)
Affirm Holdings Inc. (Nasdaq: AFRM)
National Beverage Corp. (Nasdaq: FIZZ)
Academy Sports Outdoors Inc. (Nasdaq: ASO)
Friday
Ellaktor SA ADR (OTC: ELLKY)
Best,
Chad Stone
Assistant Managing Editor, Money & Markets