Lululemon Athletica Inc. (NASDAQ:LULU) began with a bullish trend since the beginning of the week on hopes that the Q3 report would be a strong one. Lululemon had reported earnings after hours yesterday that toppled analyst estimates and showed signs of strength as the company heads into the holiday season. Share value began to grow as the report released and reached a current intraday high of $72.70.
The yoga-wear producer reported a profit of 47 cents a share that beat estimates of 43 cents on average. Sales projections had also beat expectations, store sales had rose 7 percent in the last quarter, beating the average estimate of 5.4 percent according to Consensus Metrix. Net value reported $544.4 million versus the $540.1 million estimate.
“Lululemon’s strong top-line results showed that concerns about an athletic slowdown do not apply to them,” analyst Paul Lejuez from Citigroup Inc., said in a note to clients. “Concerns in the market about too much clearance online were proven to be overblown/misunderstood.”
The yoga-wear company expects Q4 revenue between $765 million to $785 million. Analysts have estimated revenue for Q4 to be $786.7 million.