Lululemon shares fall after company offers weak fourth quarter guidance

Lululemon connected Thursday reported income and nett that topped estimates, but the institution offered softer guidance than expected for the 4th quarter.

Shares of the institution fell much than 9% aft hours.

Here's what the institution reported for the three-month play compared with what Wall Street was expecting, based connected a survey of analysts by Refinitiv:

• Earnings per share: $2, adjusted, vs. $1.97 expected
• Revenue: $1.86 cardinal vs. $1.81 cardinal expected

The diversion apparel retailer is simply a fashionable promenade destination that's known for its trendy — and pricey — workout apparel and loungewear. Even arsenic ostentation hits Americans' wallets and radical formal up again, investors person stake that the marque tin support drafting shoppers and getting them to spend.

Lululemon's third-quarter nett income roseate to $255.5 million, oregon $2 per share, from $187.8 million, oregon $1.44 per stock a twelvemonth ago. Revenue roseate 28% to $1.86 billion.

CEO Calvin McDonald said Lululemon was pleased with the commencement of the vacation season. Yet the company's guidance for the 4th came successful weaker than hoped. Lululemon said Thursday it expects 4th fourth per-share net of $4.20 to $4.30, compared to estimates of $4.30. It besides sees gross of betwixt $2.605 cardinal to $2.655 billion, versus a projected $2.649 billion.

The retailer raised its full-year forecast successful September, saying it expects 2022 gross of betwixt $7.865 cardinal and $7.940 billion, up from the scope of $7.610 cardinal to $7.710 cardinal it stated past quarter. It besides raised its adjusted net per stock outlook to a scope of $9.75 to $9.90, from past quarter's guidance of $9.35 to $9.50 adjusted.

Shares of the institution are down much than 4% truthful acold this year. The banal has outperformed the S&P 500 Index, which is down astir 17% during the aforesaid period. It closed Thursday astatine $374.51, bringing the marketplace headdress to $47.75 billion.