Cash Live
    Trending
    • Self-made millionaire: ‘Don’t buy a home—unless you can afford to waste money’
    • State, local relief not in cards for residents of high-tax states as House assesses Inflation Reduction Act
    • Ether surges to a two-month high after ethereum inches closer to long-awaited upgrade
    • Disney raises streaming prices after services post big operating loss
    • Jim Beam maker says some customers trading down, others still paying more for high-end liquor
    • Buying a car and want to go electric? Inflation Reduction Act extends $7,500 tax credit — but with price, income caps
    • What ‘crypto winter?’ Schwab launches ETF giving investors significant cryptocurrency exposure
    • Gas is cheaper but groceries are not: How to save as food inflation jumps at the fastest pace since 1979
    • Personal Finance
    • Investing
      • Investing
      • Advisors
      • Investor Tips
    • Earnings
    • Business
      • Business
      • Small Business
    • Finance
      • Finance
      • Wealth
    Cash Live
    Home»Earnings»Lululemon earnings top estimates, but shares fall after retailer cuts forecast for Mirror sales
    Earnings

    Lululemon earnings top estimates, but shares fall after retailer cuts forecast for Mirror sales

    December 10, 2021No Comments3 Mins Read
    106981450 1638193169155 gettyimages 1236836311 US GREATER CHICAGO AREA BLACK FRIDAY SHOPPING scaled
    Share
    Facebook Twitter LinkedIn Pinterest Email

    In this article

    • LULU
    People line up to enter a store during Black Friday shopping at Fashion Outlets of Chicago in Rosemont of Greater Chicago Area, Illinois, the United States, on Nov. 26, 2021.
    Joel Lerner | Xinhua News Agency | Getty Images

    Lululemon‘s stock gave up gains in extended trading Thursday after the company slashed its sales expectations for Mirror, the at-home fitness device it acquired last year.

    The athletic apparel maker reported fiscal third-quarter earnings and sales ahead of analysts’ estimates, prompting it to raise its full-year outlook.

    However, it said some shopper demand over the holidays might have been pulled forward, as consumers kicked off their gift buying earlier this year. As a result, its fourth-quarter outlook came in lighter than some analysts had expected.

    Lululemon shares were recently falling less than 1% in after hours, having closed the day down 2.1%.

    Here’s how Lululemon did in the three-month period ended Oct. 31 compared with what analysts were expecting, based on a Refinitiv survey:

    • Earnings per share: $1.62 adjusted vs. $1.41 expected
    • Revenue: $1.45 billion vs. $1.41 billion expected

    Lululemon’s third-quarter net income rose to $187.8 million, or $1.44 per share, from $143.6 million, or $1.10 per share, a year ago.

    Excluding one-time items, it earned $1.62 per share, ahead of expectations for $1.41.

    Sales rose about 30% to $1.45 billion from $1.12 billion a year earlier. That was ahead of expectations for $1.41 billion.

    The boost was largely driven by Lululemon’s men’s business, which grew 44% year over year. Sales in womenswear were up 25%.

    Same-store sales, which measure sales at stores open for at least 12 months, rose 32%. In North America, sales were up 28% year over year, while revenue climbed 40% internationally.

    The company is pleased with its early holiday season performance, said Chief Executive Calvin McDonald in an earnings release. Shoppers have been spending money on workout apparel such as leggings and sweat pants for themselves, but also as a gift for others.

    McDonald said the retailer’s online sales on Thanksgiving Day this year were its highest in a single day on record.

    Lowered outlook for Mirror

    Last year, as consumers shifted from working out at the gym to working out at home, Lululemon made a $500 million bet on Mirror. But that bet is now making some investors weary.

    On Thursday, Lululemon lowered its outlook for Mirror sales for the year to be between $125 million and $130 million, while previously it was looking for more than $150 million.

    “As you know, 2021 has been a challenging year for digital fitness,” McDonald said during a call with analysts. “We will not chase growth at any cost. We simply don’t need to.”

    Still, Chief Financial Officer Meghan Frank commented that the company feels “well positioned for a strong end to 2021.”

    For the fourth quarter, Lululemon expects revenue to range from $2.13 billion to $2.17 billion, and adjusted earnings per share between $3.25 and $3.32. Analysts had been looking for sales of $2.17 billion and earnings of $3.30 per share.

    It raised its full-year revenue outlook to a range of between $6.25 billion and $6.29 billion. Previously, it expected revenue of $6.19 billion to $6.26 billion. Analysts had been forecasting sales of $6.27 billion.

    It sees annual diluted earnings per share in a range of $7.38 to $7.45. After adjustments, it expects to earn between $7.69 and $7.76 per share. Analysts had been looking for full-year adjusted earnings per share of $7.51.

    As of Thursday’s market close, Lululemon shares are up about 20% year to date.

    Find the full earnings press release from Lululemon here.

    This article was originally published by Cnbc.com. Read the original article here.
    “Cryptocurrency
    fqw82np

      Related Posts

      Jim Beam maker says some customers trading down, others still paying more for high-end liquor

      August 11, 2022

      Disney streaming subscriber growth blows past estimates, as company beats on top and bottom line

      August 11, 2022

      Sweetgreen’s stock falls after salad chain lowers forecast, announces layoffs and office downsizing

      August 10, 2022

      Deliveroo first-half losses widen as food delivery firm plans exit from the Netherlands

      August 10, 2022
      Add A Comment

      Leave A Reply Cancel Reply

      Signup for our Newsletter
      Advert
      “Cryptocurrency
      Categories
      • Advisors
      • Business
      • Earnings
      • Finance
      • Investing
      • Investor Tips
      • Personal finance
      • Small Business
      • Wealth
      Signup for our Newsletter
      Advert
      Uselful links
      • Contact
      • About us
      • DMCA / Copyrights Disclaimer
      • Privacy Policy
      • Terms and Conditions
      • Cookie Policy (US)
      • Cookie Policy (EU)
      ARCHIVES
      © 2022 Designed and Powered by JL Digital webbyrå.

      Type above and press Enter to search. Press Esc to cancel.

      Manage Cookie Consent
      To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
      Functional Always active
      The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
      Preferences
      The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
      Statistics
      The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
      Marketing
      The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
      Manage options Manage services Manage vendors Read more about these purposes
      View preferences
      {title} {title} {title}