Lululemon on Thursday reported quarterly earnings and revenue that beat analysts’ estimates, but its outlook for the fourth quarter was slightly weaker than expected.
Shares of the company dropped nearly 5 percent in after-hours trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 75 cents, adjusted, vs. 70 cents expected
- Revenue: $748 million vs. $737.5 million expected
- Same-store sales: 18 percent increase vs. 13.8 percent expected
For its fourth and current quarter, the retailer expects to see revenue of as much as $1.13 billion and to earn $1.64 cents per share, numbers that disappointed investors who were expecting a busier holiday season.
Lululemon fiscal third-quarter net income rose to $94.4 million, or 71 cents per share, from $58.9 million, or 43 cents per share, a year earlier.
Excluding items, the company earned 75 cents per share, higher than the 70 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 21 percent from fiscal year 2017 to $748 million, beating expectations of $737.5 million.
Despite a weaker-than-expected outlook for the fourth quarter, Lululemon increased its revenue forecast for the fiscal year to a range of $3.24 billion to $3.25 billion, compared with a previous range of $3.19 billion to $3.24 billion. Earnings, excluding a tax reform-related expense, are expected to fall between $3.65 and $3.68 per share for the fiscal year, also up from a prior range of $3.45 to $3.53 per share.
The company’s same-store sales increased 18 percent, outpacing Wall Street estimates of 13.8 percent.
The athleisure retailer moved its quarterly release date from Wednesday to Thursday because U.S. financial markets were closed to observe a day of mourning for President George Herbert Walker Bush.