Shares of Canada’s Lululemon Athletica (LULU) are down 3% in premarket trading after the retailer issued weaker-than-expected guidance for the current holiday quarter.
The Vancouver-based company reported third-quarter earnings per share (EPS) of $2.53 U.S., which was better than $2.28 U.S. forecast on Wall Street.
Third-quarter revenue of $2.20 billion U.S. was up 19% year-over-year and was also above the $2.19 billion U.S. expected among analysts.
The increased revenue came from new and existing clients, with Lululemon taking 1.5 points of market share during Q3. Lululemon’s same-store sales rose by 13%, in line with analyst calls.
However, the company said that macroeconomic headwinds are leading it to take a conservative approach to fourth-quarter guidance.
Executives at the athletic apparel retailer said that they expect revenue of $3.14 billion U.S. to $3.17 billion U.S. for the current fourth quarter.
That guidance was just below the $3.18 billion U.S. that analysts had been expecting.
Lululemon’s earnings range of $4.85 U.S. to $4.93 U.S. was also shy of calls for $4.94 U.S. per share for the year-end quarter.
The company also authorized a new $1 billion U.S. share repurchase program.
Prior to today (Dec. 8), Lululemon’s stock had risen 44% on the year to trade at $464.67 U.S. per share.
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