Lululemon has healthy Q3
Lululemon Athletica Inc. saw double-digit increases in sales and earnings during the third quarter of fiscal 2019.
The specialty athletic apparel retailer reported net revenue of $916.1 million, an increase of 23% compared to the third quarter of fiscal 2018. Same-store sales increased 10%, or increased 11% on a constant dollar basis. Diluted earnings per share were $0.96, up 35% from $0.71 in the third quarter of fiscal 2018.
For the fourth quarter of fiscal 2019, Lululemon expects net revenue to be in the range of $1.315 billion to $1.33 billion based on a total comparable sales increase in the low double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $2.10 to $2.13 for the quarter. The guidance does not reflect potential future repurchases of the company's shares.
For the full fiscal 2019, Lululemon now expects net revenue to be in the range of $3.895 billion to $3.91 billion, based on a total comparable sales increase in the mid-teens on a constant dollar basis. Diluted earnings per share are expected to be in the range of $4.75 to $4.78 for the full year. The guidance does not reflect potential future repurchases of the company's shares.
"We're proud of the continued momentum in our business as we live into our vision to be an experiential brand,” said Calvin McDonald, CEO of Lululemon. “We are successfully executing on our Power of Three growth plan as we create authentic connections with new and existing guests around the world. I'd like to thank our amazing teams for achieving this strong level of performance."
The retailer is reporting these impressive results in the wake of some internal shake-ups. Stuart Haselden, COO and executive VP, international, Lululemon, is leaving the company effective Jan. 10, 2020 to join digitally native luggage and travel lifestyle brand Away. In September 2019, Lululemon said it will close its remaining Ivivva kids stores as it focuses its efforts on its expanding core and men’s businesses.
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