Lululemon Athletica Inc. reported a 10.5% increase in shares after its third quarter earnings, beating Wall Street expectations and bolstering the company’s outlook. The athletic wear brand’s net income rose 41.5% to $351.9 million, surpassing analysts’ projections of $2.72 per share.
Revenues for the quarter increased 8.7% to $2.4 billion, driven by strong international growth that offset a 2% decline in the Americas business. The company added 28 new stores during the period, including 14 acquired through its recent acquisition of Mexican operations.
Comparable sales rose 4%, with U.S. sales remaining flat on a net basis, as expected. CEO Calvin McDonald attributed this to the brand’s efforts to update styles and increase seasonal newness. He expressed confidence in the company’s ability to achieve historical levels of growth by spring 2025 and sees significant potential for U.S. growth.
The start of the holiday shopping season also contributed to Lululemon’s earnings, with Black Friday seeing its highest-ever visits to the shop app and e-commerce site. The company expects sales to rise 9% this year, with a revised range of $10.45 billion to $10.49 billion, up from previous estimates of 8-9% growth. Earnings per share are now projected at $14.08-$14.16 for the year, exceeding earlier projections.
Source: https://wwd.com/business-news/financial/lululemon-q3-2024-earnings-top-estimates-1236751954