Shares of Lululemon Athletica have dipped slightly after the popular exercise apparel maker raised its financial forecasts for the fourth quarter. While the company’s earnings guidance falls just shy of analysts’ estimates on the lower end, Lululemon remains optimistic about its performance.
Adjusted Earnings Expectations
Lululemon now predicts earnings per share to fall between $4.96 and $5 for the fiscal fourth quarter, a slight increase from the previous range of $4.85 to $4.93. Although analysts expected earnings to reach $4.97, this small deviation is not a cause for concern.
Increased Revenue Outlook
The company’s net revenue forecast has been adjusted to between $3.17 billion and $3.19 billion, surpassing Lululemon’s initial call of $3.135 billion to $3.17 billion. This upward revision aligns with analysts’ expectations of $3.19 billion. Lululemon has also raised its outlook for gross margins, indicating confidence in its ability to generate higher profits.
Positive Performance During Holiday Season
Lululemon’s Chief Financial Officer, Meghan Frank, expressed satisfaction with the company’s performance during the holiday season. Frank credited the success to customers’ positive response to Lululemon’s innovative and versatile product offerings.
Analysts Confirm likelihood of Guidance Boost
Market analysts at William Blair previously mentioned the possibility of Lululemon raising its guidance, indicating that this recent development may not come as a surprise to industry insiders.
Upcoming Meetings with Analysts and Investors
As part of its ongoing engagement with key stakeholders, Lululemon’s management plans to meet with analysts and investors at the ICR Conference taking place from Monday through Wednesday.
