Despite experiencing a slowdown in its U.S. growth, Lululemon, the athletic apparel brand is thriving internationally and has seen a 9% year-over-year sales increase. The company surpassed the expectations of Wall Street, for both revenue and earnings and has expressed satisfaction with the early stages of the holiday shopping season.
However, CEO Calvin McDonald adopted a cautious stance related to the outlook for the fourth quarter in a call with analysts. He mentioned that although the company has an optimistic approach to the holiday season’s kickoff, they still have some significant weeks ahead of them.
He further added that considering the shorter holiday shopping window, they have paid attention to their strategies and in planning for the overall fourth quarter.
Based on an analyst survey by LSEG, a comparison of the third-quarter performance of Lululemon against the forecasts of Wall Street. Earnings per share were $2.87 as compared to the expected $2.69 and revenue was $2.40 billion versus the much-expected $2.36 billion shares that rose approximately 8% in the after-hours trading on Thursday.
As reported by the company, the net income for the three-month period ending October 27 was $352 million, translating to $2.87 per share, up from $249 million or $1.96 per share a year before. Sales rose to $2.40 billion showing a significant increase of 9% from $2.20 billion the previous year.
Looking ahead to the crucial quarter of holiday shopping, Lululemon estimated revenue between $3.48 billion to $3.51 billion which signifies a growth of 8% to 10% as compared to last year, as per LSEG.
LSEG further added that Lululemon anticipates earnings per share somewhere in the range of $5.56 to $5.64 with the upper limit exceeding the $5.59 expected by analysts. Amidst fluctuating demand, the company has concentrated on boosting profitability.
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