Lululemon (LULU) and DocuSign (DOCU) have both rebounded from their 52-week lows following strong Q4 earnings released on Tuesday. LULU’s stock rose over 3% to $165, while DOCU increased more than 2% to $48, despite still trading more than 50% and 90% below their one-year highs of $348 and $94, respectively.
Lululemon reported Q4 sales of $3.64 billion, up nearly 1% year-over-year, surpassing estimates of $3.58 billion. Earnings were $5.01 per share, exceeding expectations of $4.76. In comparison, DocuSign’s Q4 sales reached $836.86 million, a nearly 8% increase, with earnings of $1.01 per share, exceeding projections of $0.95. Notably, DocuSign achieved over $1 billion in billings for the first time, indicating strong future revenue potential.
Despite positive earnings, both companies face challenges. Lululemon is working to restore its North American market and is currently without a permanent CEO following the resignation of Calvin McDonald in January. Analysts maintain a Zacks Rank #3 (Hold) for both stocks, with projections suggesting that DocuSign could surpass 10% EPS growth next year, a target not currently evident for Lululemon.
