After a strong start to the year, the U.S. housing market cooled in February. Housing starts fell 8.7% from January, according to data from the Commerce Department released on Tuesday. Despite the soft data, homebuilders have been on a tear. The ETF tracking homebuilding stocks, the XHB, has risen 17% in 2019. Lennar has rallied 27%, KB Home (KBH) jumped 25%, D.R. Horton (DHI) soared 20%, and Toll Brothers (TOL) has surged 11% so far this year.
Analysts polled by Bloomberg are expecting Lennar to post earnings of 75 cents per share on $4.11 billion in revenue.
As competition in the athleisure space heats up, investors will also be paying close attention to Lululemon’s sales during the quarter.
Rival Nike reported better-than-expected earnings and revenue in line with analysts’ predictions when it reported on March 21; however, the sneaker giant saw soft sales in North America.
Lululemon is anticipated to report earnings of $1.75 per share on $1.15 billion in revenue. Same-store sales, a key industry metric, are expected to have grown 16.7% during the quarter.
While Lululemon’s earnings report is important, Credit Suisse analyst Michael Binetti explained that investors should pay more attention to Lululemon’s investor day on April 24. “[We are] very optimistic on 4/24 analyst day, and recommend looking past [near-term same-store sales] volatility. We expect plenty of impactful product news (outerwear, footwear, extending franchises like men’s ABC pants to women’s),” Binetti wrote in a note on Tuesday.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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