Should Lululemon Get More Credit for Its Q3?
Lululemon Athletica shares tumbled Friday after it released mixed third-quarter results after the markets closed on Thursday.
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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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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
