Lululemon (LULU) Earnings Q3 2022

People line up to enter the store during Black Friday shopping at the Fashion Outlets of Chicago in Rosemont, Greater Chicago area, Illinois, USA, November 26, 2021.

Joel Lerner | Xinhua News Agency | Getty Images

lululemon Sales and earnings beat expectations on Thursday, but the company provided weaker-than-expected guidance for the fourth quarter.

The company’s stock fell more than 7% after hours.

Here’s what the company reported over the three months compared to what Wall Street expected, based on analyst research by Refinitiv.

  • Earnings per share: $2, adjusted expected $1.97
  • Revenue: $1.86 billion vs. $1.81 billion forecast

This athletic apparel retailer is a popular shopping mall known for trendy and expensive workout apparel and loungewear. Even as inflation hits Americans’ wallets and people dress up again, investors are confident the brand can continue to attract shoppers and drive spending.

Lululemon’s third-quarter net income increased to $255.5 million, or $2 per share, from $187.8 million, or $1.44 per share, in the prior year. Revenue increased 28% to $1.86 billion.

Comparable total sales increased 22%. A closely watched metric, also known as same-store sales, includes sales of stores that have been open for at least 12 months without temporary closures or renovations. Analysts had expected a 19% increase, according to the Street Account.

CEO Calvin McDonald said on the earnings call that the company is off to a strong start to the holiday season. According to him, Black Friday was the biggest day ever for sales and store traffic. However, he added, “We are also aware that the external environment remains challenging as the high volume of trading continues for several weeks.”

The company’s fourth-quarter guidance was weaker than expected. Lululemon said Thursday that he expects earnings per share for the fourth quarter to be $4.30, down from $4.20. Also, he expects to earn $2.655 billion from $2.65 billion, against an expected $2.649 billion.

For the full year, the company expects revenue of $7.944 billion to $7.994 billion, up from its previous forecast of $7.865 billion to $7.94 billion. It also raised its adjusted earnings per share guidance to a range of $9.87 to $9.97 from last quarter’s guidance of $9.75 to $9.90.

The company’s stock has fallen more than 4% so far this year. The stock outperformed the S&P 500 Index, which fell about 17% over the same period. On Thursday, he closed at $374.51 for a market cap of $47.75 billion. Lululemon (LULU) Earnings Q3 2022

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