lululemon Athletica Inc (NASDAQ:LULU) shares moved almost 7% lower afterhours as weak guidance from the athletic apparel brand overshadowed better-than-expected financial results for the holiday quarter.
For the first quarter of fiscal 2025, lululemon expects earnings per share (EPS) in the range of $2.53 to $2.58, missing Street estimates of $2.74.
The company guided revenue in the range of $2.34 and $2.35 billion, representing growth of 6% to 7% but below estimates of $2.39 billion.
Meghan Frank, lululemon’s CFO, expressed optimism about the company’s growth prospects as it navigates macro uncertainties.
“There are significant opportunities ahead for the lululemon brand and we are confident in our ability to continue creating long-term value for all our stakeholders,” Frank said in a statement.
lululemon outperformed expectations for Q4, with revenue growing 13% to $3.6 billion and EPS increasing to $6.14 from $5.29 in the year-ago quarter.
This beat estimates of $3.58 billion and $5.88, respectively.
"Our fourth quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment,” lululemon CEO Calvin McDonald said.
Shares of lululemon were down 6.9% at about $318 post-earnings.