Lululemon posts strong results, CEO cites holiday momentum

VANCOUVER, British Columbia — Athletic apparel maker Lululemon Athletica Inc. on Wednesday posted strong results for its fiscal third-quarter and raised its forecasts for the full year, sending its stock jumping in after-hours trading.

CEO Laurent Potdevin said he's "energized by our momentum" at the start of the key holiday shopping season.

The Vancouver, British Columbia-based company known for its yoga wear said it had profit of $58.9 million, or 43 cents per share, in the three-month period that ended Oct. 29. That was down from $68.3 million, or 50 cents a share a year ago.

Earlier this year, the company announced it was shuttering most of its Ivivva brand stores. Adjusted to exclude costs related to the closures and other non-recurring items, its earnings were 56 cents per share in the latest quarter.

That topped Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share.

The company posted revenue of $619 million in the period, up 14 percent from the $544.4 million a year ago. That also surpassed Street forecasts. Eleven analysts surveyed by Zacks expected $611.5 million.

Lululemon raised its forecasts for its profit and revenue for its fiscal year ending in January. It now expects adjusted earnings of $2.45 to $2.48 a share, up from a prior forecast of $2.35 to $2.42 a share. Revenue is expected in a range between $2.59 billion and $2.61 billion, up from $2.55 billion to $2.56 billion.

It also announced a $200 million stock buy-back program.

Its stock was up $4.34, or 6.4 percent, to $72 in after-hours trading following the release of the earnings report.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LULU at https://www.zacks.com/ap/LULU

Bombardier Inc. to partner with Airbus on C...

Oct 17, 2017

Canadian plane maker Bombardier has a sold a majority stake in its C Series passenger jet business...

Indigenous, environmental leaders protest Canada...

Mar 10, 2018

Indigenous people and environmental activists are converging in Vancouver Saturday to protest a...

Canada pipeline protesters erect structure near...

Mar 10, 2018

Anti-pipeline activists are erecting a cedar protest structure within distance of Kinder Morgan's...

Police search for more victims of Canada serial...

Mar 21, 2018

People with relatives who have been reported missing in Canada are tensely following developments...

The Latest: Trump tweeting about G-7 before Kim...

Jun 11, 2018

President Donald Trump is taking more swipes at Canada and its prime minister over trade issues as...

Financial Markets

Market Sanctum is one of the world’s leading news sources for the currency trading community. Our analysts report on the latest changes in the current market, providing in-depth analysis.

Contact us: sales[at]marketsanctum.com