Holiday season sales shine, Lululemon (LULU.US) raises Q4 revenue and profit guidance

Lululemon Athletica (LULU.US) announced on Monday that it expects fourth quarter revenue for 2024 to be between $35.60 billion and $35.80 billion, an increase of 11% to 12% compared to the previous forecast of $34.75 billion to $35.10 billion, and higher than the analyst consensus of $34.70 billion. At the same time, Lululemon expects diluted earnings per share for the fourth quarter to be between $5.81 and $5.85, higher than the previous forecast of $5.56 to $5.64, and also above the analyst consensus of $5.66. The company also expects gross margins for the fourth quarter to increase by 30 basis points compared to the same period last year, previously forecasted to decline by 20 to 30 basis points; and anticipates sales, general, and administrative expenses for the fourth quarter to decrease by 80 to 90 basis points compared to the same period last year. Lululemon CEO Meghan Frank stated, "During the holiday season, our customers have responded well to our products, allowing us to raise our performance expectations for the fourth quarter." Boosted by this news, as of the time of writing, Lululemon's pre-market stock in the U.S. rose nearly 3% on Monday.