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Lennar, Lululemon report — What to know in markets Wednesday

Heidi Chung
Reporter

Homebuilder Lennar (LEN) is gearing up to report financial results ahead of the opening bell on Wednesday, and athleisure brand Lululemon (LULU) will report after market close.

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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