Lululemon CEO ‘Energised By Opportunities Ahead’ After Q3 Results


Image Source
Lululemon Athletica Inc (Nasdaq: LULU) lost about 7.0% in extended hours even after its reported strong results for its third financial quarter.

Why is Lululemon stock down in after-hours?
The stock is being punished primarily because the retailer issued downbeat guidance for its holiday quarter. Lululemon now forecasts its sales to fall between $3.14 billion and $3.17 billion in the current quarter on up to $4.93 of per-share earnings.Analysts, in comparison, were at $3.18 billion and up to $5.19 a share, respectively. Still, Calvin McDonald – the Chief Executive of Lululemon Athletica said in a press release today:

As we enter the holiday season, we’re pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter.

Lululemon stock is still up 45% versus its year-to-date low.

Lululemon authorises share repurchase
On the plus side, Lululemon saw sales climb 12% in North America in its fiscal Q3 while international jumped a whopping 49%.The Chief Executive also told analysts on the earnings call that ongoing trends were encouraging as he revealed Black Friday this year to be the “single biggest day” in the history of Lululemon Athletica.

This was another strong quarter for Lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally.

The multinational athletic apparel retailer also announced a $1.0 billion share repurchase programme on Thursday. Wall Street currently has a consensus “overweight” rating on its shares.

Another sign that student loan payments are back?

Consumer spending growth slowed to 0.2% in October, the lowest in over 6 months.

This is down sharply from a 0.7% rise in consumer spending in September

All as retail sales declined for the first time since March 2023.

New… pic.twitter.com/oFOGOmUt0j

— The Kobeissi Letter (@KobeissiLetter) December 7, 2023

Lululemon Q3 earnings snapshot

  • Earned $249 million versus the year-ago $255 million
  • Per-share earnings also narrowed from $2.0 to $1.96
  • Adjusted EPS printed at $2.53 as per the press release
  • Revenue went up 19% year-on-year to $2.20 billion
  • Consensus was a share on $2.19 billion in revenue
  • Lululemon reported an 18% annualised growth in its comparable direct-to-consumer sales for the third quarter – also ahead of expectations.

    I am energised by the significant opportunities ahead.

    More By This Author:Robinhood Launches Commission-Free Crypto Trading In Europe
    Microsoft And Meta To Use New AMD Chip As An Alternative To Nvidia
    McDonald’s Partners With Google As It Lays Out Ambitious Goals For 2027

    Reviews

    • Total Score 0%
    User rating: 0.00% ( 0
    votes )



    Leave a Reply

    Your email address will not be published. Required fields are marked *