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Lululemon Reports Big Q3 Earnings Beat, On Track For $4 Billion In Revenue By 2020

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Lululemon Reports Big Q3 Earnings Beat, On Track For $4 Billion In Revenue By 2020
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Lululemon Athletica inc. (NASDAQ: LULU) soared after a solid third quarter report that saw comps up 8 percent.

The company reported third quarter adjusted EPS of 56 cents, topping estimates by 4 cents. Sales came in nearly $10 million higher than estimates at $619 million.

Lululemon management also issued strong guidance, expecting fourth quarter earnings of $1.19-$1.22 against a $1.17 estimate, and FY17 earnings and sales guidance ahead of consensus.

"Our teams powerfully delivered robust results across both store and digital channels this quarter, driving a further acceleration in our business. The strength of our Q3 earnings supports our unique position as the global brand defining an active, mindful lifestyle," lululemon CEO Laurent Potdevin said following the release. "As we start the holiday season, I'm energized by our momentum and we are increasing guidance to reflect this performance. I'm grateful for the enthusiasm I see every day across our collective as we remain on our path to delivering $4 billion in revenue in 2020."

Q3 Highlights

Total Comps up 8 percent

  • Revenues up 14 percent year-over-year
  • Board of Directors authorizes a new $200 million share buyback program
  • Direct to consumer revenues up 26 percent
  • Gross profit up 16 percent

Shares of lululemon were trading up 7 percent at $72 in the after-hours sesson.

Posted-In: Laurent PotdevinEarnings News Guidance Top Stories After-Hours Center Movers Best of Benzinga

 

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