Black Friday shoppers at a Lululemon store at the Garden State Plaza in New Jersey.
Mike Calia | CNBC
Lululemon On Thursday it said there was strong demand in the third quarter, but the retailer's shares fell as it gave a tepid holiday outlook.
While sales grew in North America and internationally, the retailer's holiday guidance fell short of expectations. Lululemon said its expected fourth-quarter revenue will be between $3.14 billion and $3.17 billion, lower than the $3.18 billion analysts expected, according to LSEG, formerly known as Refinitiv.
It expects earnings to be between $4.85 and $4.93 per share, compared with estimates of $4.80 to $5.19, according to LSEG. For the full year, Lululemon expects revenue to be between $9.55 billion and $9.58 billion, compared to estimates of $8.11 and $9.90 billion, according to LSEG.
Here's how the company did in its third fiscal quarter:
- Earnings per share: $2.53 adjusted. It was not immediately clear whether the numbers were comparable to what Wall Street expected, based on a survey of analysts by LSEG
- Revenue: $2.20 billion versus $2.19 billion expected
The company's reported net income for the three-month period ended Oct. 29 was $249 million, or $1.96 per share, compared to $255 million, or $2 per share, a year earlier.
Revenue rose to $2.2 billion, up about 19% from $1.86 billion a year earlier.
“This was another strong quarter for lululemon as our innovative product offerings and community activations continued to resonate strongly with our guests around the world. As we enter the holiday season, we are pleased with our early performance and are well positioned to to continue to serve our guests in the coming years. The fourth quarter,” said CEO Calvin McDonald in a press release. “I am energized by the significant opportunities ahead of me.”
This story is developing. Check back later for updates.