When Lululemon Athletica Inc. (NASDAQ: LULU) reported its most recent quarterly results after the markets closed on Wednesday, the company said that it had $0.56 in earnings per share (EPS) and $619 million in revenue. That compared with consensus estimates of $0.52 in EPS and revenue of $611.5 million. The fiscal third quarter of last year reportedly had EPS of $0.50 and $544.4 million in revenue.
During the quarter, total comparable sales increased 8%, or increased 7% on a constant dollar basis. This was comprised of comparable store sales increasing 2% and direct to consumer net revenue increasing 26%.
At the same time, gross margin was 52.2%, increasing from 51.1% in the fiscal third quarter.
In terms of the fourth quarter outlook, the company expects to see EPS in the range of $1.19 to $1.22 and net revenues between $870 million and $885 million. The consensus estimates call for $1.18 in EPS and $866.82 million in revenue.
On the books, Lululemon cash and cash equivalents totaled $650.1 million at the end of the quarter, down from $734.8 million at the end of the previous fiscal year.
Lululemon CEO Laurent Potdevin commented:
Our teams powerfully delivered robust results across both store and digital channels this quarter, driving a further acceleration in our business. The strength of our Q3 earnings supports our unique position as the global brand defining an active, mindful lifestyle.
Also:
As we start the holiday season, I’m energized by our momentum and we are increasing guidance to reflect this performance. I’m grateful for the enthusiasm I see every day across our collective as we remain on our path to delivering $4 billion in revenue in 2020.
Shares of Lululemon closed Wednesday at $67.66, with a consensus analyst price target of $66.50 and a 52-week trading range of $47.26 to $72.70. Following the announcement, the stock was up about 9% at $73.90 in early trading indications Thursday.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.