Lululemon raises Q4 earnings, revenue guidance. LULU stock withdrawal.
Lululemon shares rose Monday after the athletic retailer posted strong guidance on fourth-quarter earnings and sales based on its strong holiday performance.
Lululemon (The sphere) revenue for the January-to-end fourth quarter is expected to grow 11%-12% to $3.56 billion to $3.58 billion. to $3.51 billion from the previous figure of $3.475 billion. The company now forecasts earnings of $5.81-$5.85 per share, up from its prior forecast of $5.56 to $5.64 per share.
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FactSet expects Q4 earnings of $5.66 per share on sales of $3.473 billion.
Lululemon expects gross margin to increase 30 basis points from last year. Previously, it led to a reduction of 20 to 30 basis points.
“During the holiday season, our guests responded positively to our product offerings, allowing us to increase our fourth quarter guidance,” CFO Meghan Frank said in the release. The company plans to present its annual ICR conference for retailers, hospitality and restaurant companies from January 13 to 15 in Orlando, Florida.
Lululemon on Dec. 5 posted a 7% increase in revenue on top of Q3 estimates of 9% revenue growth.
Lululemon collection
LULU stock rose less than 1% Monday to close at 398.86.
Shares traded 2.9% higher in premarket trading at 407 on Monday.
Lululemon is working on a flat base with a 420.01 buy point similar to the December high. Investors can view that flat base as a lever toward a larger, much deeper base through the end of 2023.
Shares have paid about 79% off their 2024 lows in early August. Still, Lululemon is down 22 percent from its December 2023 high of $516.93.
You can follow Harrison Miller on X/Twitter for more stock news and updates. @IBD_Harrison
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