People line as much as enter a retailer throughout Black Friday purchasing at Fashion Outlets of Chicago in Rosemont of Greater Chicago Area, Illinois, the United States, on Nov. 26, 2021.
Joel Lerner | Xinhua News Agency | Getty Images
Lululemon on Thursday reported gross sales and revenue that topped estimates, however the firm supplied softer steerage than anticipated for the fourth quarter.
Shares of the corporate fell greater than 7% after hours.
Here’s what the corporate reported for the three-month interval in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $2, adjusted, vs. $1.97 anticipated
- Revenue: $1.86 billion vs. $1.81 billion anticipated
The athletic attire retailer is a well-liked mall vacation spot that is identified for its stylish — and dear — exercise attire and loungewear. Even as inflation hits Americans’ wallets and other people costume up once more, traders have guess that the model can hold drawing buyers and getting them to spend.
Lululemon’s third-quarter web earnings rose to $255.5 million, or $2 per share, from $187.8 million, or $1.44 per share a yr in the past. Revenue rose 28% to $1.86 billion.
Its complete comparable gross sales elevated by 22%. The intently watched metric, additionally referred to as same-store gross sales, consists of gross sales from shops which were open constantly for not less than 12 months, with out short-term closures or renovations. Analysts anticipated a 19% enhance, in keeping with Street Account.
CEO Calvin McDonald mentioned on an earnings name that the corporate had a powerful begin to the vacation season. He mentioned Black Friday was the most important day in its historical past for gross sales and retailer site visitors. But he added, “We also recognize that the external environment remains challenging with several high-volume weeks still in front of us.”
The firm’s steerage for the fourth quarter got here in weaker than hoped. Lululemon mentioned Thursday it expects fourth quarter per-share earnings of $4.20 to $4.30, in comparison with estimates of $4.30. It additionally sees income of between $2.605 billion to $2.655 billion, versus a projected $2.649 billion.
For the complete yr, the corporate mentioned it sees income of $7.944 billion to $7.994 billion, up from its earlier forecast of between $7.865 billion and $7.940 billion. It additionally raised its adjusted earnings per share outlook to a variety of $9.87 to $9.97, from final quarter’s steerage of $9.75 to $9.90.
Shares of the corporate are down greater than 4% to this point this yr. The inventory has outperformed the S&P 500 Index, which is down about 17% throughout the identical interval. It closed Thursday at $374.51, bringing the market cap to $47.75 billion.
