Should Lululemon Get More Credit for Its Q3?

By Chris Lange Updated Jan 11, 2:01PM EST · Published Dec 7, 11:40AM EST

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Should Lululemon Get More Credit for Its Q3? — © fizkes / iStock

When Lululemon Athletica Inc. (NASDAQ: LULU) released its most recent quarterly results after the markets closed on Thursday, the firm said that it had $0.75 in earnings per share (EPS) and $747.7 million in revenue. The consensus estimates had called for $0.69 in EPS and $735.93 million in revenue, and the fiscal third quarter of last year reportedly had EPS of $0.56 on $619.0 million in revenue.

During the latest quarter, total comparable sales increased 17%, or increased 18% on a constant dollar basis. Comparable store sales increased 6%, or 7% on a constant dollar basis, while direct to consumer net revenue increased 44%, or 46% on a constant dollar basis.

Direct to consumer net revenue represented 25.3% of total net revenue compared to 21.2% last year.

Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $1.64 to $1.67 and net sales are expected to be between $1.115 billion and $1.125 billion. Consensus estimates call for $1.65 in EPS and $1.12 billion in revenue for the quarter.

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CEO Calvin McDonald commented:

Lululemon has achieved a high level of success over the past year and has established a solid foundation to continue to build our future. It’s been exciting to see guests around the world respond so strongly to our product offerings and improved digital experience. I look forward to what’s ahead for our brand as we strive to exceed the expectations of our guests.

Shares of Lululemon were last seen down nearly 8% at $121.09, in a 52-week range of $72.13 to $167.79. The consensus analyst price target is $163.34.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.