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Lululemon Stock Jumps on Strong Earnings, Improved Full-Year Outlook
Key Takeaways
Lululemon ( LULU ) topped third-quarter earnings estimates and raised its full-year outlook on Thursday, sending shares sharply higher in extended trading.
The exercise apparel company saw revenue grow 9% year-over-year to $2.4 billion, above the consensus among analysts surveyed by Visible Alpha. Net income was $351.9 million, or $2.87 per share, compared to $248.7 million, or $1.96 per share, a year earlier. Profit also exceeded analysts' projections.
The earnings beat comes after CEO Calvin McDonald last quarter acknowledged the company's “newness” problem , with fewer seasonally updated products leading to lower conversion rates. That led in part to a 3% drop in North American comparable-store sales . This quarter, North American comparable-store sales fell 2%.
Lululemon raised its full-year revenue forecast to between $10.452 billion and $10.487 billion, up from a previous range of $10.375 billion to $10.475 billion.
Shares of Lululemon were up 10% in recent after-hours trading. The stock had lost about a third of its value in 2024 as of Thursday's close.
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