Lululemon raises Q4 outlook on strong holiday trading

For the fourth quarter, Lululemon Athletica now expects net revenue will be in the range of 3.560 billion dollars to 3.580 billion dollars, representing growth of 11 percent to 12 percent or 6 percent to 7 percent excluding the 53rd week of 2024.

The company previously expected revenue to be in the range of 3.475 billion dollars to 3.510 billion dollars.

The company said in a release that diluted earnings per share are now expected to be in the range of 5.81 dollars to 5.85 dollars versus previous guidance range of 5.56 dollars to 5.64 dollars.

Lululemon now expects gross margin to increase approximately 30 basis points relative to the fourth quarter of fiscal 2023, compared to its previous guidance of a decrease of 20 to 30 basis points.

Commenting on the updated outlook, Meghan Frank, the company’s chief financial officer, said: “During the holiday season, our guests responded well to our product offering, enabling us to increase our fourth quarter guidance.”