People line up to enter a store during Black Friday shopping at Fashion Outlets of Chicago in Rosemont in the Greater Chicago Area, Illinois, U.S., on November 26, 2021.
Joel Lerner | Xinhua News Agency | beautiful pictures
lulumon on Thursday reported revenue and profit that beat estimates, but the company gave softer-than-expected guidance for the fourth quarter.
The company’s shares fell more than 9% after hours.
Here’s what the company reported over a three-month period compared to what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2, adjusted, vs. $1.97 expected
- Revenue: $1.86 billion vs. $1.81 billion expected
Sportswear retailer is a popular mall destination known for its trendy — and expensive — workout clothes and sunglasses. Even as inflation hits Americans’ pockets and people dress up again, investors are betting that the brand can continue to attract shoppers and keep them spending.
Lululemon’s third-quarter net income rose to $255.5 million, or $2 per share, from $187.8 million, or $1.44 per share, a year ago. Revenue increased 28% to $1.86 billion. Comparable sales rose 22%, compared with a 19% increase expected, according to the Street Account.
CEO Calvin McDonald said Lululemon was pleased with the start of the holiday season. However, corporate guidance for the quarter was weaker than expected. Lululemon said Thursday that it expects fourth-quarter earnings per share of $4.20 to $4.30, compared with an estimate of $4.30. It also had revenue between $2.605 billion and $2.655 billion, compared with a projected $2.649 billion.
For the full year, the company said it posted revenue between $7.944 billion and $7.994 billion, up from a previous forecast of $7.865 billion to $7.940 billion. It also raised its adjusted earnings outlook per share to somewhere between $9.87 and $9.97, from last quarter’s guidance of $9.75 to $9.90.
The company’s shares have fallen more than 4% this year. The stock has outperformed the S&P 500 Index, which is down about 17% in the same period. It closed on Thursday at $374.51, bringing its market cap to $47.75 billion.
