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- Lululemon shares hit a record high in intraday trading Friday after the retailer reported earnings that beat estimates, although its outlook missed analysts' projections.
- Lululemon CEO , Calvin McDonald, said that this year's Black Friday was the biggest sales day in the company's history.
- Lululemon announced it would add $1 billion to its stock buyback program.
Shares of Lululemon Athletica Inc. (LULU) reversed earlier losses and jumped more than 5% to a record intraday trading Friday after the retailer reported earnings that beat estimates, although its outlook missed analysts' projections.
Lululemon said current quarter earnings per share (EPS) would be between $4.85 and $4.93, while analysts were looking for between $4.80 and $5.19. The company's revenue guidance of $3.135 billion to $3.170 billion for the fourth quarter was slightly below estimates of $3.18 billion.
For the third quarter, the company reported EPS of $2.53, higher than expected, while revenue of $2.19 billion was in line with expectations. CEO Calvin McDonald said this year's Black Friday was the biggest sales day in the world. the company's history and that the company was “pleased with the trends we saw going into the holiday season.” However, Chief Financial Officer (CFO) Meghan Frank added that Lululemon “remains cognizant of uncertainties related to the macroeconomic environment and we continue to plan our business based on multiple scenarios.”
Total comparable sales increased 13% year-over-year. there's more than expected, with direct-to-consumer sales up 18%. Comparable sales at its stores rose 9%, missing estimates.
Lululemon also announced that It plans to expand its billion-dollar share buyback program.
After initially decreasing, the Lululemon Athletica shares were up 5.2% at $488.80 per share around 12:50 p.m. ET. ET Friday. They are up over 50% so far this year.
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Source: investopedia.com
