lululemon athletica Inc. Raises Q4 Revenue Forecast Significantly

lululemon athletica Inc. Updates Revenue Projections for Fourth Quarter

lululemon athletica inc. (NASDAQ:LULU) recently announced significant updates regarding their revenue expectations for the fourth quarter of the current fiscal year. As the holiday season approached, the company projected that their net revenue would reach between $3.560 billion to $3.580 billion. This is a remarkable growth of 11% to 12% when compared to the same quarter in the previous fiscal year. If we exclude the impact of the additional week in 2024, the growth rate adjusts to approximately 6% to 7%. This adjustment reflects a positive change from their earlier guidance, which previously estimated the range at $3.475 billion to $3.510 billion.

Anticipated Earnings Growth

In addition to the increased revenue forecasts, lululemon is also expecting a rise in diluted earnings per share for the fourth quarter. The estimates now range from $5.81 to $5.85, up from the company's previous projections of $5.56 to $5.64. Such improvements highlight the resilience and adaptability of lululemon's business model amidst fluctuating market conditions.

Improving Financial Metrics

Notably, the company anticipates an increase in gross margin by approximately 30 basis points compared to the fourth quarter of the previous year. Initially, they had expected a decline in gross margins between 20 to 30 basis points. Furthermore, lululemon expects to see a significant decrease in selling, general, and administrative expenses, now projected to be between 80 to 90 basis points, compared to the earlier estimate of 90 to 100 basis points.

Positive Holiday Season Response

Meghan Frank, Chief Financial Officer of lululemon, expressed optimism regarding the upcoming results. She emphasized, “During the holiday season, our guests responded well to our product offering, enabling us to increase our fourth-quarter guidance.” This response indicates solid consumer engagement and reflects the brand's strong market presence. As they near the end of this fiscal year, Frank noted gratitude for the dedication of their teams worldwide in supporting both guests and communities.

Engagement at ICR Conference

The company will have a presence at the ICR Conference, where they will meet with analysts and investors on January 13-15, 2025. This event provides a platform to share detailed insights about their performance, future initiatives, and tailored strategies that resonate with their audience.

About lululemon athletica Inc.

lululemon athletica inc. (NASDAQ:LULU) specializes in technical athletic apparel, footwear, and accessories designed for yoga, running, and various training activities. The company focuses on innovation, striving to create transformative products and engaging experiences that foster genuine connections with customers. With ongoing collaborations with yogis and athletes, lululemon continuously enhances its product lineup based on direct feedback from users across the globe.

Frequently Asked Questions

What are the new revenue expectations for lululemon?

lululemon now expects net revenue for the fourth quarter to be between $3.560 billion and $3.580 billion, an increase from their prior estimates.

How has lululemon's earnings per share changed?

The diluted earnings per share are projected to be between $5.81 and $5.85, up from an earlier range of $5.56 to $5.64.

What factors contributed to the increased guidance?

Positive consumer responses during the holiday season led lululemon to revise their expectations upward, highlighting strong engagement with their product offerings.

When will lululemon present at the ICR Conference?

lululemon will present at the ICR Conference on January 13-15, 2025, where they will meet with analysts and investors.

What is lululemon's approach to product development?

lululemon focuses on innovation and collaboration with athletes and community members to ensure their products meet customer needs effectively.

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