{"id":133983,"date":"2024-12-06T13:33:57","date_gmt":"2024-12-06T06:33:57","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=133983"},"modified":"2024-12-06T13:33:57","modified_gmt":"2024-12-06T06:33:57","slug":"lululemon-lulu-earnings-q3-2024","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=133983","title":{"rendered":"Lululemon (LULU) earnings Q3 2024"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/LULU\/\">Lululemon<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>&#8216;s U.S. growth is continuing to slow, but the athletic apparel retailer is making big gains abroad, leading to a 9% increase in sales year over year.<\/p>\n<p>The yoga pants company on Thursday beat Wall Street&#8217;s expectations on the top and bottom lines<strong>\u00a0<\/strong>and said it&#8217;s &#8220;pleased&#8221; with the start to the holiday season. Still, on a call with analysts, CEO Calvin McDonald took a cautious tone when discussing the company&#8217;s fourth quarter outlook.<\/p>\n<p>&#8220;While we feel good about the start of the holiday season, we still have large volume weeks in front of us,&#8221; said McDonald. &#8220;Given the shorter holiday shopping season, we continue to be thoughtful in our planning for quarter four overall.&#8221;<\/p>\n<p>Here&#8217;s how Lululemon performed in its fiscal third quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:<\/p>\n<ul>\n<li><strong>Earnings per share: <\/strong>$2.87 vs. $2.69 expected<\/li>\n<li><strong>Revenue: <\/strong>$2.40 billion vs. $2.36 billion expected<\/li>\n<\/ul>\n<p>Shares climbed about 8% in extended trading Thursday.<\/p>\n<p>The company&#8217;s reported net income for the three-month period that ended Oct. 27 was $352 million, or $2.87 per share, compared with $249 million, or $1.96 per share, a year earlier<\/p>\n<p>Sales rose to $2.40 billion, up about 9% from $2.20 billion a year earlier.<\/p>\n<p>For the all-important holiday shopping quarter, Lululemon is expecting revenue to be between $3.48 billion and $3.51 billion, representing growth of 8% to 10% from the prior year. Analysts were expecting revenue of $3.50 billion, or growth of 9.1%, which is roughly in line with the midpoint of the guidance, according to LSEG.<\/p>\n<p>It&#8217;s expecting earnings per share to be between $5.56 and $5.64, the high end of which is ahead of the $5.59 analysts had expected, according to LSEG.<\/p>\n<p>On a call with analysts, finance chief Meghan Frank said the company is planning the business &#8220;prudently&#8221; given the <a href=\"https:\/\/www.cnbc.com\/2024\/10\/19\/holiday-shopping-season-elections-hurricanes-to-affect-retail-spending.html\">shortened holiday shopping season<\/a> and the &#8220;uncertain macro environment.&#8221;<\/p>\n<p>For the full year, Lululemon tightened its revenue guidance and raised it by just a hair. It now expects fiscal 2024 revenue to come in between $10.45 billion and $10.49 billion, compared to previous guidance of between $10.38 billion and $10.48 billion. The outlook would top the $10.44 billion that Wall Street had expected, according to LSG<\/p>\n<p>It&#8217;s expecting earnings per share to be between $14.08 and $14.16, ahead of the $13.97 that analysts had expected.<\/p>\n<p>Lululemon has hit a rough patch over the last year. It&#8217;s still growing, but at a slower pace than it was previously, and the competitive environment has gotten more intense. Lululemon has always competed with legacy giants like <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/NKE\/\">Nike<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GAP\/\">Gap&#8217;<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>s Athleta and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\"><a href=\"https:\/\/www.cnbc.com\/quotes\/LEVI\/\">Levi<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>&#8216;s Beyond Yoga, but newer disrupters such as Vuori and Alo Yoga are also taking share from the Canadian retailer.\u00a0<\/p>\n<p>The company has turned to China for growth, which so far is lifting sales across the overall business. Company-wide comparable sales grew 4% during the quarter, ahead of the 3.2% growth Wall Street was anticipating, according to StreetAccount.<\/p>\n<p>Behind that number is a 2% slowdown in comparable sales in the U.S., but a 25% increase internationally. Overall revenue grew 2% in the Americas during the quarter and 33% internationally. Still, the Americas remains Lululemon&#8217;s largest market, and international is still a fraction of its overall revenue.\u00a0<\/p>\n<p>Lululemon has also had a few <a href=\"https:\/\/www.cnbc.com\/2024\/08\/29\/lululemon-lulu-earnings-q2-2024.html#:~:text=Sales%20rose%20to%20%242.37%20billion,in%20the%20Americas%20fell%203%25.\">self-inflicted challenges<\/a>. It fumbled a high-profile product launch earlier this year and missed out on sales in the U.S. when it failed to offer the colors and sizes that its core customers desired.<\/p>\n<p>When the company reported earnings in August, McDonald insisted that the brand remains strong in the U.S., but its women&#8217;s business had slowed because it didn&#8217;t have enough new styles to entice customers.\u00a0<\/p>\n<p>All of these issues coincided with the departure of Lululemon&#8217;s longtime chief product office Sun Choe, who resigned in May and joined <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/VFC\/\">V.F. Corp<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>. In the wake of her departure, McDonald unveiled a new reporting structure on the product side of the house that merges together Lululemon&#8217;s brand and merchandising teams under chief brand and product activation officer Nikki Neuburger. McDonald said the new structure makes the company more efficient and said it&#8217;s &#8220;on track&#8221; to increase new product releases in time for the spring selling season.<\/p>\n<p>&#8220;Our teams have been agile and have been chasing into seasonal colors, prints and patterns. I&#8217;m sure you&#8217;ve seen several examples across our key franchises,&#8221; said McDonald. &#8220;These efforts have contributed to the sequential improvement in newness within our assortment in the back half of the year &#8230; we continue to see significant potential for growth in the U.S.&#8221;<\/p>\n<p>In a note, GlobalData managing director Neil Saunders said it looks like Lululemon&#8217;s product struggles are behind it.<\/p>\n<p>&#8220;Across the third quarter the women&#8217;s range felt fresh and interesting and there was more than enough to grab the attention of shoppers,&#8221; the retail analyst said. &#8220;This both improved the conversion rate and helped with average basket sizes. In our view, Lululemon deserves praise for the quick course correction\u00a0which underlines that it is a merchant-led organization.&#8221;<\/p>\n<p>Lululemon&#8217;s struggles also came at a time when consumers, reeling from persistent inflation and an economy that feels worse than perhaps it actually is, are <a href=\"https:\/\/www.cnbc.com\/2024\/11\/29\/holiday-shopping-retail-winners-losers.html\">choosier than ever<\/a> and <a href=\"https:\/\/www.cnbc.com\/2024\/10\/24\/consumers-choose-favorite-retailer-nike-kohls.html\">less forgiving<\/a> when a brand makes a mistake.\u00a0<\/p>\n<p>Amid its rough patch, Lululemon has turned to stock buybacks to keep Wall Street happy. It approved a $1 billion increase to its stock repurchase program this month. As of Thursday, it had approximately $1.8 billion remaining in the program.<\/p>\n<p>Lululemon has also focused on boosting profitability amid uncertain demand. During the third quarter, gross margin grew more than expected, increasing by 1.5 percentage points to 58.5%, ahead of the 57.5% that analysts had expected, according to StreetAccount.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/12\/05\/lululemon-lulu-earnings-q3-2024.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lululemon&#8216;s U.S. growth is continuing to slow, but the athletic apparel retailer is making big gains abroad, leading to a 9% increase in sales year over year. The yoga pants &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=133983\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-133983","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/133983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=133983"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/133983\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=133983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=133983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=133983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}