Lululemon Shares Are Trading Lower After The Company Reported Q3 Financial Results And Issued Guidance

Benzinga

Lululemon Athletica Inc (NASDAQ:LULU) reported third-quarter financial results Thursday after the bell. Here's a look at the key metrics from the quarter.  Q3 Earnings: Lululemon said third-quarter revenue increased 19% year-over-year to $2.2 billion, which beat the consensus estimate of $2.19 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $2.53 per share, which beat analyst estimates of $2.28 per share.  North America net revenues increased 12% year-over-year. International revenues were up 49% year-over-year. Total comparable sales were up 13% year-over-year, comparable store sales were up 9%, and direct-to-consumer sales increased 18%. Inventories were down 4% year-over-year.  Lululemon opened 14 new company-operated stores during the third quarter, bringing its total store count up to 686. The company ended the quarter with $1.1 billion in cash and equivalents.   Lululemon said it had $243.2 million remaining on its previous stock repurchase program. The board also authorized an additional $1 billion buyback.   "This was another strong quarter for lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally. As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter," said Calvin McDonald, CEO of Lululemon.   Outlook: Lululemon sees fourth-quarter revenue in the range of $3.135 billion to $3.17 billion versus estimates of $3.18 billion. The company anticipates full-year 2023 revenue of $9.549 billion to $9.584 billion. Full year earnings are expected to be between $12.34 and $12.42 per share.

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00:00 So Joel, do you got your Lulu lemon pants on?

00:03 Had them on yesterday, Mitch.

00:06 I had them on yesterday.

00:07 Oh, that's what you were rocking yesterday.

00:10 I saw all the ladies looking.

00:12 Q3 adjusted EPS here, $2.53,

00:16 beating the $2.28 estimate.

00:18 Sales of 2.2 billion beat the 2.19 billion estimate.

00:23 North America net revenues increasing 12% year over year.

00:28 International revenues were up 49% year over year.

00:32 And then total comparable sales were up 13%.

00:35 And when you look at the direct to the consumer sales,

00:38 that increased 18%.

00:40 So they're still finding ways to really kind of,

00:43 I mean, they're still finding ways to sell this brand.

00:48 And it's high end, like everything is high end.

00:51 And there's nothing cheap about Lulu.

00:54 I mean, a headband will probably cost you 20 bucks at Lulu.

00:59 Including the stock, big spikes all over the place.

01:05 The big spike down, someone got really carried away

01:09 when they took this to 429.

01:12 Yeah, 429.37.

01:15 Boy, I'll tell you, we're starting out in the red here,

01:18 down 767, currently trading at 457.

01:22 I drew this trend line in yesterday.

01:24 That's one steep old trend line here.

01:28 Very steep, that's connecting several lows.

01:31 For today, it comes in at the 440 area,

01:35 just above the 440 area.

01:37 I just don't know where you find,

01:39 I mean, you're looking between 440 and 460.

01:43 The only thing you have is a pair of lows at 452.40.

01:48 That's the number.

01:50 If we hold that 452.40, bulls are still in full control.

01:55 We'll take this up, we'll take out the high of the move.

01:58 If you lose that 452.40, I see downside here.

02:03 I don't know about the bottom of this trend line.

02:06 If it takes out this trend line, Katie, bar the door.

02:09 But I really like that number.

02:10 And then coming back on the upside,

02:13 maybe people are trying to wiggle out

02:15 at the bottom of yesterday's range.

02:18 I'll call 460.60 resistance here for Lulu Lemon.

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