Lululemon Athletica Increases Guidance After Positive Q3 Results

Investing.com — Lululemon Athletica lifted its full-year guidance Thursday after reporting better-than-expected third-quarter results and increased its stock buyback plan by $1 billion.

Lululemon Athletica Inc (NASDAQ:LULU) saw a 9% increase in after-hours trading following the report.

For the three months ended Oct. 27, Lululemon, the Canadian company known for its pricey leggings, reported earnings per share of $2.87 on revenue of $2.4 billion. Wall Street had anticipated EPS of $2.71 on revenue of $2.36 billion.

Comparable sales increased 4%, or 3% in constant dollar terms, driven by growth in international markets.

For Q4, the company expects diluted earnings per share in the range of $5.56 to $5.64 on revenue of $3.48 billion to $3.51 billion, compared with Wall Street estimates of EPS $5.60 on revenue of $3.5 billion.

For the full year, the company adjusted its expectations to EPS in the range of $14.08 to $14.16, up from the prior $13.95 to $14.15. Net revenue guidance increased to between $10.45 billion and $10.49 billion, up from $10.38 billion and $10.48 billion.

The company also approved a $1 billion increase to its stock repurchase program.