:max_bytes(150000):strip_icc()/GettyImages-2177640453-01b941105afa4bcda08a820813c53304.jpg?w=780&resize=780,470&ssl=1 "Lululemon Stock Jumps on Strong Earnings, Improved Full-Year Outlook")
Key Takeaways
- Shares of Lululemon jumped in extended trading Thursday after the athletic apparel company reported better-than-expected quarterly results and raised its full-year outlook.
- Revenue grew 9% to $2.4 billion and net income rose more than 40% to $351.9 million; both exceeded analyst estimates.
- Comparable-store sales in North America, the company’s largest market, continued to decline.
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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