Are Lululemon Earnings Enough for Investors?

By Chris Lange Updated Jan 30, 12:17PM EST · Published Dec 11, 4:22PM EST

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Lululemon Athletica Inc. (NASDAQ: LULU | LULU Price Prediction) released fiscal third-quarter financial results after markets closed Wednesday. The company said that it had $0.96 in earnings per share (EPS) and $916 million in revenue, compared with consensus estimates that called for $0.93 in EPS and $899.66 million in revenue. The same period of last year reportedly had $0.75 in EPS and $747.66 million in revenue.

Overall, revenues increased 23% year over year and 23% on a constant currency basis. Direct to consumer net revenue represented 26.9% of total net revenue, compared to 25.3% last year.

Total comparable sales increased 16% from last year, or up 17% in constant currency. Comparable store sales increased by 10%, while direct to consumer net revenue increased by 11%.

Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $2.10 to $2.13 and revenue between $1.315 billion and $1.330 billion. Consensus estimates are calling for $2.13 in EPS and $1.32 billion in revenue for the quarter.

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CEO Calvin McDonald commented:

We’re proud of the continued momentum in our business as we live into our vision to be an experiential brand. We are successfully executing on our Power of Three growth plan as we create authentic connections with new and existing guests around the world. I’d like to thank our amazing teams for achieving this strong level of performance.

Shares of Lululemon closed Wednesday at $233.19, in a 52-week range of $110.71 to $233.53. The consensus price target is $229.15. Following the announcement, the stock was initially down about 5% at $222.00 in the after-hours trading session.

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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.