2013-69.87B

2014-71.28B

2013-3B

2014-2.69B

2013- 469.16B

2014- 476.29B

2013-17B

2014-15.88B

1 Year: -27%

5 Years: 13%

1 Year: 0.1%

5 Years: 25

notable return on equity. Their weaknesses are unimpressive growth in net income and weak operating cash flow. Luckily, “LULU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which is considered a relatively favorable sign.”  They also have a net profit margin of 10.52%, which trails the industry average. However, when comparing Lulu to the industry average, the firm's growth rate is much lower.

Target has been recently releasing some very interesting news. The board of directors of Target Corporation has declared a quarterly dividend of 56 cents per common share, which is a 7.7 percent increase from the prior quarterly dividend of 52 cents. Therefore targets board of directors has approved an expansion of its current share repurchase from $5 billion to $10 billion. After this through the first quarter of 2015 target had invested a total of $3.7 billion to retire 56.9 billion shares at an average price of $65.06 per share. This is good because target share price is higher than Walmart.Given targets outlook for capital expenditures and the strong cash generation of targets business, they expect to have the capacity to increase their annual dividend, and repurchase billions of dollars ofTarget shares annually, while maintaining their current credit ratings.

It was stated that Walmart’s shares may be closing in on new highs after posting there quarterly results. Walmart’s Net sales rose just 1.6% to $114.9 billion. Walmart’s products online have went up 20% in sales throughout the world of online shopping. Therefore stores sales have gone down 0.3% recently, which was a shock for Walmart. The chain claims that 60% of the country buys something at Walmart in any given month, therefore this proves that Walmart isn’t only for low-income families.

Walmart is causing a lot of trouble for people who want to shop online during the holiday season, “the thanksgiving shopping rush Thursday morning, Throwing a wrench in some shoppers’ plans to avoid long lines by grabbing deals online” which was stated in the article. This made Walmart’s sales go down on Black Friday which is very unusually for Walmart. During this time the website was overloaded with demand that made things worse.  It was stated that as soon as the discounts started the website became for slow which made the online shoppers mad. This was not a good thing for Walmart, they lost many good sales they could of have had.  

Target will be paying the banks $39.4 million in a settlement over it breach in 2013. This will include all banks that had cards that have been affected by the date breach, which is financial consequences they have to figure out. The money will be to cover the cost of reimbursing customers, replacing cards and legal fees. The target breach resulted in 40 million credit and debit cards being compromised.  Which also saw the private information of 70 million people possibly being stolen. Therefore the company has made effort to increase security. Target also faces problems from the government organizations and lawsuits.

.

eps

.

sales-expenses= net income

.

original revenue: 16,435,000

go down to:14,000,000

difference: 2,436,000

.

p/e: 9.58

.

eps: 2.87

forcasted eps: 2.40

.

SP?/ Forcasted EPS= p/e (yahoo) .

SP/2.40=9.58

.

SP=22.99

Due to Gaps decrease in sales theirstock price will decrease. I predict that it will decrease toapproximatley $22.99. This means the EPS will be about $2.40, which is .47 dollars less than before.

.

eps

.

sales-expenses= net income

.

original revenue: 1,797,213

go down to: 1,200,000

difference: 597,213

.

p/e: 24.10

.

eps: 1.66

forcasted eps: 1.30

.

SP?/ Forcasted EPS= p/e (yahoo) .

SP/(1.20)=24.10

.

SP=28.92

I believe that the stock price will lower due to the major downgrade in the yoga clothing materials. Specifically I believe that the stock price will go to about $28.92. This stock price is $17.20 less than before. In conclusion the revenue will also decrease as will the earnings per share. The earnings per share will be approximatleu $1.20.