Lululemon Athletica Inc. lifted its guidance for the fourth quarter ended February 2 due to strong holiday sales.
Calvin McDonald, chief executive officer, commented: “We’re excited by the momentum in our business over the holiday period with guests responding well to our innovative merchandise offerings. The connection we have with our guests remains strong, and I want to thank our teams across the globe for their hard work and dedication throughout 2019.”
For the fourth quarter of fiscal 2019, Lululemon now anticipates that net revenue will be in the range of $1.370 billion to $1.380 billion based on a total comparable sales increase in the mid- to high-teens on a constant dollar basis. This compares to previous guidance of net revenue of $1.315 billion to $1.330 billion based on a total comparable sales increase in the low double-digits on a constant dollar basis.
Lululemon now expects diluted earnings per share will be in the range of $2.22 to $2.25 for the fourth quarter. This compares to previous diluted earnings per share guidance of $2.10 to $2.13.
The revised guidance for the fourth quarter continues to assume 131 million diluted weighted-average shares outstanding and a 28.5 percent tax rate.
The updated guidance comes as Lululemon’s management team will be meeting with analysts and investors at the ICR Conference in Orlando, FL on January 13-15, 2020.
Photo courtesy Lululemon