Lululemon’s (NASDAQ: LULU) third-quarter results Thursday topped wall street expectations. However, the company provided weaker fourth-quarter guidance. Shares plummeted over 7% in after-hours trading.
The multinational athletic apparel retailer reported earnings of USD2 per share, compared to the expected USD1.97 a share. Revenue amounted to USD1.86 Billion, higher than analysts anticipated USD1.81 Billion.
“In the third quarter, we continued to deliver strong and balanced results across the business, demonstrating the significant potential for our brand. Our ongoing momentum is a testament to our innovative products, deep community relationships, and the hard work and dedication of our talented teams around the world. We are pleased with our early holiday season performance and look forward to all that’s ahead for lululemon as we continue to deliver on our Power of Three ×2 growth plan,” stated Calvin McDonald, Lululemon’s Chief Executive Officer.
Overall, comparable sales rose 22% though analysts had only been expecting a 19% increase, according to Street Account. McDonald affirmed that the company had a strong start to the holiday season. He continued on to say that Black Friday was the best day in its history of sales as well as store traffic. Nevertheless, he added, “We also recognize that the external environment remains challenging with several high-volume weeks still in front of us.”
Lululemon shares have fallen over 4% throughout the year and have a current market cap of USD47.75 Billion.