Lululemon Athletica Inc. released its financial results for the third quarter and shared its expectations for the upcoming holiday quarter. Despite the challenges posed by an uncertain economy, the athletic-apparel company demonstrated its ability to navigate through these conditions successfully.
Third Quarter Performance
During the third quarter of 2022, Lululemon earned $249 million, or $1.96 per share, compared to $255 million, or $2 per share, in the same period last year. While the stock initially dropped over 3% in the extended session, it is important to note the company’s adjusted earnings per share of $2.53, surpassing the estimated adjusted EPS of $2.28.
Steady Revenue Growth
Lululemon reported a 19% increase in revenue, reaching $2.2 billion for the third quarter. This result was in line with the FactSet consensus, showcasing the continued strength of the company’s business model.
Looking Ahead
Meghan Frank, Chief Financial Officer of Lululemon Athletica Inc., expressed confidence in the company’s ability to drive long-term growth and create value for its stakeholders. As they approach the end of the fiscal year and look ahead to 2024, Lululemon remains committed to maintaining a high level of execution, despite the uncertain macro environment.
Fourth Quarter Expectations
Lululemon expects fourth-quarter revenue to be between $3.135 billion and $3.170 billion. This would represent growth of 13% to 14%. Additionally, diluted earnings per share are projected to be between $4.85 and $4.93 for the quarter. While these figures slightly missed the FactSet consensus of $4.94 earnings per share on sales of $3.18 billion, the company remains optimistic about its performance.
Focused on 2023 and Beyond
Looking ahead to 2023, Lululemon anticipates revenue to be within the range of $9.549 billion to $9.584 billion, signifying an 18% growth. Diluted earnings per share are expected to range between $11.77 and $11.85 for the year.
Maintaining Momentum
Lululemon’s stock has seen significant growth this year, with a 45% increase compared to the S&P 500 index’s advance of approximately 19%. This achievement demonstrates the company’s resilience and strong performance in a challenging market.
Lululemon Athletica Inc. continues to thrive, delivering consistent growth and driving value for its stakeholders. With a steadfast focus on executing their business model effectively, Lululemon remains positioned for long-term success.
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