Lululemon Q3 Earnings Overview: EPS Beat, Revenue Beat, Comps Up 13%, $1B Buyback And More
Portfolio Pulse from Adam Eckert
Lululemon Athletica Inc (NASDAQ:LULU) reported Q3 earnings with a 19% year-over-year revenue increase to $2.2 billion, surpassing estimates of $2.19 billion. Adjusted EPS was $2.53, beating estimates of $2.28. North America and international revenues grew by 12% and 49%, respectively. Comparable sales rose 13%, with a 9% increase in store sales and 18% in direct-to-consumer sales. The company opened 14 new stores, announced a $1 billion buyback, and provided Q4 and full-year 2023 revenue and earnings guidance slightly below estimates. LULU shares dropped 3.91% after hours to $446.01.
December 07, 2023 | 9:23 pm
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Lululemon's Q3 earnings exceeded expectations with strong revenue and EPS growth, and the company announced a $1 billion stock buyback. However, shares fell after hours, possibly due to the Q4 and full-year guidance being slightly below estimates.
Lululemon's positive earnings report and stock buyback announcement are typically bullish signals. However, the after-hours stock price decline suggests that the market may have been expecting even stronger guidance for Q4 and the full year. The short-term impact is likely negative due to the market's reaction to the guidance, despite the overall positive earnings.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100