Lululemon, the popular athletic apparel retailer, has reported strong demand and a positive start to the holiday shopping season in its third fiscal quarter. The company’s earnings per share were $2.53, adjusted for certain items, but it remains unclear if this figure met Wall Street expectations.
In terms of revenue, Lululemon exceeded expectations by slightly surpassing $2.20 billion, compared to the estimated $2.19 billion. However, net income for the third quarter was $249 million, or $1.96 per share, lower than the $255 million, or $2 per share, recorded in the same period last year.
Despite these variations, overall sales rose by an impressive 19% to $2.2 billion, with a notable 12% increase in North America and an impressive 49% increase internationally. Lululemon’s CEO, Calvin McDonald, hailed Black Friday as the “single biggest day” in the company’s history and expressed optimism for the upcoming holiday season.
However, Lululemon’s holiday guidance falls short of expectations, as the fourth quarter is projected to see sales between $3.14 billion and $3.17 billion, lower than the expected $3.18 billion. Similarly, earnings per share for the fourth quarter are expected to range from $4.85 to $4.93, compared to analyst estimates of $4.80 to $5.19.
Looking ahead to the full year, Lululemon anticipates sales between $9.55 billion and $9.58 billion, compared to estimates ranging from $8.11 billion to $9.90 billion. Despite these projections, total comparable sales for the company were up 13%, exceeding analyst expectations. However, comparable sales at Lululemon stores were lower than anticipated.
Additionally, Lululemon incurred impairment charges of $72.1 million due to the winding down of its acquired fitness company, Mirror. As a result, Lululemon has formed a partnership with Peloton, no longer selling Mirror devices or producing content for its Studio app. Instead, Peloton will provide content for Lululemon’s app.
Overall, Lululemon’s third fiscal quarter showcased strong demand and positive growth. The company’s performance during the holiday shopping season will be closely watched to determine if it can continue its upward trajectory.
“Travel aficionado. Incurable bacon specialist. Tv evangelist. Wannabe internet enthusiast. Typical creator.”