Lululemon Q3 revenue up 28 percent, ups FY outlook

Athletic apparel brand Lululemon has upped its full-year guidance after posting a 28 percent increase in revenue in the third quarter of the year.

The US-Canadian company made revenue of 1.86 billion dollars in the period, up from 1.45 billion dollars a year earlier.

Comparable store sales were up 14 percent, or 17 percent on a constant dollar basis, while direct to consumer revenue increased 31 percent, or 34 percent on a constant dollar basis.

“In the third quarter, we continued to deliver strong and balanced results across the business, demonstrating the significant potential for our brand,” CEO Calvin McDonald told investors.

He added that the company has been “pleased” with its early holiday season performance.

Lululemon reported Q3 diluted earnings per share of 2 dollars compared to 1.44 dollars a year earlier.

Updated outlook

“Our ongoing momentum is a testament to our innovative products, deep community relationships, and the hard work and dedication of our talented teams around the world,” McDonald said.

Despite the Q3 growth, shares in Lululemon fell Thursday as its guidance for the important holiday quarter was below Wall Street analysts’ estimates.

For the fourth quarter, the company expects revenue to be between 2.605 billion dollars and 2.655 billion dollars, and diluted earnings per share in the range of 4.20 dollars and 4.30 dollars.

Lululemon also upped its full-year guidance. It now expects revenue of between 7.944 billion dollars and 7.994 billion dollars, up from its previous guidance of between 7.865 billion dollars and 7.940 billion dollars.

It expects full-year diluted earnings per share to be in the range of 9.94 dollars and 10.04 dollars, up from previous guidance of between 9.82 dollars and 9.97 dollars.