Lululemon Q4 Earnings: Revenue Beat, EPS Beat, Shares Slide On Weak Q1 Guidance
Portfolio Pulse from Adam Eckert
Lululemon Athletica Inc (NASDAQ:LULU) reported Q4 earnings with a revenue increase of 16% year-over-year to $3.205 billion, surpassing estimates. EPS was $5.29, beating the $4.97 forecast. Despite strong Q4 performance, shares slid due to weaker than expected Q1 guidance, with revenue projected between $2.175 billion and $2.2 billion versus estimates of $2.25 billion, and EPS forecasted at $2.35 to $2.40, below the $2.55 estimate. Full-year 2024 revenue is expected to be between $10.7 billion and $10.8 billion, above the $9.61 billion estimate, with full-year earnings anticipated between $14 and $14.20 per share, exceeding the $12.46 per share estimate.
March 21, 2024 | 8:21 pm
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Lululemon reported strong Q4 earnings but provided weaker than expected Q1 guidance, causing shares to drop 8.34% after hours.
Lululemon's share price decline is directly tied to its weaker than expected Q1 guidance, overshadowing its strong Q4 performance. Investors often react negatively to forecasts suggesting slower growth, leading to a decrease in stock price in the short term.
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