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Lululemon's Stock Heads Downward Despite Q3 Earnings Beat

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Lululemon's Stock Heads Downward Despite Q3 Earnings Beat

Lululemon Athletica Inc (NASDAQ: LULU) shares are dropping despite reporting a third-quarter earnings and sales beat.

Earnings came in at 96 cents per share, beating estimates by 3 cents. Sales came in at $916.1 million, beating estimates by $18.09 million. This is a 22.5% increase over sales of $747.655 million the same period last year.

The company fourth-quarter EPS at $2.10-$2.13 versus the $2.13 analyst estimate, on sales of $1.315-$1.33 billion versus a $1.32 billion estimate.

See Also: Guy Adami And Mike Khouw's Lululemon Option Trade

"We're proud of the continued momentum in our business as we live into our vision to be an experiential brand," CEO Calvin McDonald commented in the press release. "We are successfully executing on our Power of Three growth plan as we create authentic connections with new and existing guests around the world. I'd like to thank our amazing teams for achieving this strong level of performance."

Highlights

  • Revenues were up 23%
  • Comps were up 16%
  • Direct to consumer net revenue increased 29%

Lululemon shares traded down about 4.2% in Wednesday's after-hours session. The stock closed the regular session up 1.5% at $233.19 per share.

Posted-In: Calvin McDonaldEarnings News Guidance Top Stories After-Hours Center Best of Benzinga

 

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