Lululemon (LULU) reported better-than-expected third-quarter results, sending its shares soaring 16% higher on Friday. The company raised its full-year sales and profit forecasts for 2024, citing continued global momentum and growth in international markets.
Revenue came in at $2.4 billion, exceeding analyst estimates of $2.36 billion. Earnings per share beat expectations by $0.56, hitting $2.87 compared to the year-ago period’s $2.53. For the full year, Lululemon boosted its net revenue guidance to between $10.45 billion and $10.49 billion.
Gross margins improved sequentially, rising 150 basis points to 58.5%. The company also announced a $1 billion increase to its stock buyback program on December 3.
Despite the positive report, Lululemon’s shares have underperformed the broader market this year, plummeting over 30% as newer brands captured market share with trendier styles and products. Analysts point to increased short-level interest as a catalyst for the long-term fundamental story, highlighting the need for investors to focus on the company’s underlying performance.
Source: https://finance.yahoo.com/news/lululemon-stock-rises-on-profit-beat-as-company-boosts-full-year-outlook-211820899.html