Lululemon Athletica (NASDAQ:LULU), down 2.6% in premarket changing hands at $452.50, gave weak guidance for the holiday quarter distracting from an otherwise positive third-quarter earnings beat.
Lululemon’s fourth-quarter sales guidance was weaker than expected by Wall Street analysts as its full-year 2023 profit forecast also disappointed.
The company projected sales in the range of $3.14 billion to $3.17 billion, below estimates of $3.18 billion.
It expects EPS in the range of $4.85 to $4.93, with analysts expecting this to come in at the higher end at $4.92.
Full-year guidance of earnings per share between $11.77 and $11.85 were below estimates of $12.15.
It expects 2023 sales in the range of $9.549 billion to $9.584 billion, compared to analysts’ estimates of $9.58 billion.
For the third quarter, sales increased 19% year-over-year to $2.2 billion, slightly above estimates of $2.2 billion.
Adjusted earnings per share were $2.53, topping estimates of $2.27.
It opened 14 new company-operated stores during the three months, ending with 686 stores.
“This was another strong quarter for Lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally,” CEO Calvin McDonald said in a statement.
“As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter.”