Zhitong Finance APP learned that on the morning of December 9th, Beijing time, Lululemon (LULU.US) announced its third-quarter results. The financial report shows that the company’s Q3 revenue was US$1.86 billion, a year-on-year increase of 28%, exceeding market expectations of US$1.81 billion; net profit was US$255.5 million, compared with US$187.8 million in the same period last year; adjusted earnings per share were US$2, It beat market expectations of $1.97, compared to $1.44 a year earlier.
Total comparable sales rose 22%. The closely watched metric, also known as same-store sales, includes sales at stores that have been open for at least 12 consecutive months without temporary closures or renovations. Analysts expected a 19% increase, according to Street Account.
Lululemon CEO Calvin McDonald said on the earnings call that the company is off to a strong start to the holiday season. Black Friday is the biggest day in its history for sales and store traffic. But he added that the external environment remained challenging.
Lululemon’s guidance for the fourth quarter was lower than market expectations. The company expects Q4 revenue to be US$2.605 billion to US$2.655 billion, with market expectations of US$2.649 billion; earnings per share of US$4.20-4.30, with market expectations of US$4.30. The midpoints of the guidance ranges were all lower than market consensus expectations.
Lululemon expects full-year revenue of US$7.944 billion to US$7.994 billion, higher than the previous forecast of US$7.865 billion to US$7.940 billion; adjusted earnings per share is expected to be raised to US$9.87-9.97, higher than the previous forecast of US$9.75-9.90.
As of press time, Lululemon fell 6.81% after hours to $349.