Black Friday shoppers at a Lululemon store at the Garden State Plaza in New Jersey.
Mike Calia | CNBC
Lululemon on Thursday said it saw strong third-quarter demand, but the retailer’s shares fell as it gave a tepid holiday outlook.
Though sales grew across North America and internationally, the retailer’s holiday guidance came 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, according to LSEG, formerly known as Refinitiv.
It expects earnings to be between $4.85 and $4.93 per share, compared to estimates of $4.80 to $5.19, according to LSEG. For the full year, Lululemon expects sales to be between $9.55 billion and $9.58 billion, compared to estimates of $8.11 and $9.90 billion, according to LSEG.
Here’s how the company 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 company’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 year earlier.
Sales rose to $2.2 billion, up about 19% from $1.86 billion a year earlier.
“This was another strong quarter for lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally. As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter,” CEO Calvin McDonald said in a news release. “I am energized by the significant opportunities ahead.”
This story is developing. Please check back for updates.