Lululemon Athletica (NASDAQ:LULU) updated its financial forecast for the fourth quarter of the 2023 fiscal year, raising its revenue and earnings expectations.
The athletic apparel company now expects net revenue to be between $3.17 billion and $3.19 billion for the quarter, marking a 14% to 15% increase from the same period in 2022. This projection surpasses their earlier estimates of $3.135 billion to $3.17 billion.
The company also adjusted its forecast for diluted earnings per share (EPS) for the quarter, now expecting it to be between $4.96 and $5.00, higher than the previously anticipated range of $4.85 to $4.93. Analysts had predicted sales of $3.18 billion and an EPS of $4.97.
Additionally, Lululemon revised its gross margin forecast for the quarter, now expecting it to range from 58.6% to 58.7%, slightly up from the prior guidance of 58.3% to 58.6%.
Meghan Frank, the Chief Financial Officer of Lululemon, expressed satisfaction with the company’s holiday season performance, highlighting the positive response from customers to their products. She noted that sales trends were strong across various channels, categories, and regions, leading to increased guidance for the quarter and rounding off a robust year for the company.