Lululemon warns of worse-than-expected profit and sales for holiday quarter
Lululemon Athletica Inc. late Thursday called for lower-than-expected holiday-quarter figures, saying that it has navigated an “uncertain” economy.
Lululemon
LULU,
earned $249 million, or $1.96 a share, in the third quarter, compared with $255 million, or $2 a share, in the third quarter of 2022. The stock dropped more than 3% in the extended session.
Adjusted for one-off items, the athletic-apparel company earned $2.53 a share, which compares with expectations of adjusted EPS of $2.28, according to FactSet.
Revenue rose 19% to $2.2 billion, the company said, in line with FactSet consensus.
The company’s quarterly performance “reflects the ongoing strength of our business model and our teams’ ability to successfully execute at a high level amid an uncertain macro environment,” Chief Financial Officer Meghan Frank said in a statement.
“As we look to the end of our fiscal year and into 2024, we remain focused on driving long-term growth and creating value for all our stakeholders,” Frank said.
Lululemon said it expects fourth-quarter revenue to be in a range between $3.135 billion and $3.170 billion, which would represent growth of 13% to 14%. Diluted earnings per share are seen between $4.85 and $4.93 for the quarter.
FactSet consensus calls for earnings of $4.94 a share on sales of $3.18 billion.
The company said it expects 2023 revenue of $9.549 billion to $9.584 billion, representing growth of 18%. Diluted earnings per share are expected to be in the range of $11.77 to $11.85 for the year.
When it reported second-quarter earnings in August, Lululemon called for net revenue between $9.510 billion and $9.570 billion, and EPS of $12.02 to $12.17 for the year.
The stock has gained 45% this year, compared with an advance of around 19% for the S&P 500 index
SPX.
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