Lululemon Athletica inc. (NASDAQ:LULU) late Wednesday posted market-beating third quarter earnings results and offered bullish guidance for the all-important holiday quarter, sending its shares surging higher in aftermarket trading.
The Vancouver, BC, Canada-based yoga attire maker reported Q3 earnings per share (EPS) of $0.56, which was $0.04 better than the Wall Street consensus estimate of $0.52.
Revenues rose 13.7% from last year to $619 million, also beating analysts’ view for $610.56 million.
LULU said that total comparable sales (comps) surged 8% in the latest period, 7% when excluding currency exchange effects. Comparable store sales rose 2%, or 1% on a constant dollar basis, while direct to consumer net revenue jumped 26% (25% on a constant dollar basis).
Looking ahead, Lululemon forecast Q4 EPS of $1.19 to $1.22, ahead of the $1.17 per share analysts are looking for, and revenues ranging from $870 to $885 million, versus Wall Street’s estimate of $869.64 million.
The company commented via press release:
Laurent Potdevin, CEO, lululemon, commented: “Our teams powerfully delivered robust results across both store and digital channels this quarter, driving a further acceleration in our business. The strength of our Q3 earnings supports our unique position as the global brand defining an active, mindful lifestyle.”
Mr. Potdevin added: “As we start the holiday season, I’m energized by our momentum and we are increasing guidance to reflect this performance. I’m grateful for the enthusiasm I see every day across our collective as we remain on our path to delivering $4 billion in revenue in 2020.”
Lululemon Athletica inc. shares rose more than 6% in after-hours trading Wednesday following the report. Year-to-date, LULU has gained 4.11%, versus a 19.44% rise in the benchmark S&P 500 index during the same period.