Athletic gear maker Lululemon Athletica Inc. (NASDAQ: LULU) raised its fourth-quarter revenue and earnings guidance after markets closed on Monday. The company increased its revenue guidance from a prior range of $670 million to $685 million to a new range of $690 million to $695 million.
Fourth-quarter earnings per share guidance was also raised from a prior range of $0.75 to $0.78 to a new range of $0.78 to $0.80.
Revenue guidance is higher due to a total same-store sales increase in the high-single digits on a constant dollar basis. Earnings guidance is based on 139 million diluted weighted-average shares outstanding and a tax rate of 29.5%.
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CEO Laurent Potdevin said:
We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks. Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance. We are looking forward to 2016 and will enter the year with a very strong leadership team across the company that is relentlessly driving our strategic priorities and long term vision.
In premarket trading Tuesday, shares were up 8.5% to $59.39, in a 52-week range of $43.14 to $70.00. The consensus price target on the stock is $58.15 and the high target is $80.00.
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