Black Friday shoppers at a Lululemon store on the Garden State Plaza in Latest Jersey.
Mike Calia | CNBC
Lululemon on Thursday said it saw strong third-quarter demand, however the retailer’s shares fell because it gave a tepid holiday outlook.
Despite a 12% jump in sales in North America and a 49% spike internationally, the retailer’s holiday guidance got here in light of expectations. Lululemon said its expected sales to be between $3.14 billion and $3.17 billion for the fourth quarter, which is shy of the $3.18 billion analysts had expected, based on LSEG, formerly often called Refinitiv.
It expects earnings to be between $4.85 and $4.93 per share, in comparison with estimates of $4.80 to $5.19, based on LSEG. For the complete yr, Lululemon expects sales to be between $9.55 billion and $9.58 billion, in comparison with estimates of $8.11 and $9.90 billion, based on LSEG.
Here’s how the corporate did in its third fiscal quarter:
- Earnings per share: $2.53 adjusted. It wasn’t immediately clear if the figures were comparable, with what Wall Street was anticipating, based on a survey of analysts by LSEG
- Revenue: $2.20 billion vs. $2.19 billion expected
The corporate’s reported net income for the three-month period that ended October 29 was $249 million, or $1.96 per share, compared with $255 million, or $2 per share, a yr earlier.
Sales rose to $2.2 billion, up about 19% from $1.86 billion a yr earlier.
“This was one other strong quarter for lululemon as our progressive product offerings and community activations continued to powerfully resonate with our guests globally. As we enter the vacation season, we’re pleased with our early performance and are well-positioned to deliver for our guests within the fourth quarter,” CEO Calvin McDonald said in a news release. “I’m energized by the numerous opportunities ahead.”