Lululemon (NASDAQ:LULU) reported its third-quarter results, with earning and sales topping analysts’ forecasts. The company had an impressive quarter as consumers across the globe picked its sports bras and yoga pants over competitors’. Equally, the male apparel segment continued to grow. However, LULU stock dipped over 5% in Thursday’s session.
Lululemon’s Q3 Revenue Beat Analysts’ Estimates
The apparel retailer said that it earned $126 million or $0.96 per share in the third quarter relative to earnings of $94 million or $0.71 per share in the same quarter of the last year. The company’s net revenue increased by 23% from a year ago to $916.1 million, beating Wall Street expectations of $899.7 million.
The company’s sales for stores open in the last 12 months and online rose by 17% compared to analysts’ projected growth of 14.4%.
The company’s fourth-quarter outlook was slightly below analysts’ expectations. The apparel retailer now expects earnings of between $2.10 and $2.13 per share, while Wall Street was calling for earnings of $2.13 per share.
Lululemon indicated that this outlook has factored in the fact that there are six shopping days less between Thanksgiving and Christmas relative to last year.
At the time of writing, LULU stock is down 5.13% at $221.70.
Lululemon Expanding Product Line
The Canadian apparel company has focused on growing its presence internationally by expanding its product line to include self-care products and menswear. It has also developed a subscription-based loyalty program that it is currently testing and plans to expand next year.
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With competition from the likes of Adidas and Nike (NYSE:NKE), the company has indicated that it wants to enhance its menswear segment and online sales in the next five years. Equally, it targets annual revenue growth in low teens during that period. Lululemon expects to quadruple its international market revenue by 2023.
In its Q4, the company is expecting revenue to be between $1.32 billion and $1.33 billion, which is below Wall Street expectations. However, the company has increased its revenue range to between $3.895 billion and $3.910 billion, up from a previous range of between $3.73 billion and $3.77 billion.
LULU stock is still up over 80% so far in 2019.
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