Lululemon: Key revenue metric growth to slow in 4Q

Lululemon 3Q results up, top view; but says key revenue metric's growth will slow in 4Q

Associated Press

NEW YORK (AP) -- Lululemon Athletica's fiscal third-quarter results beat analysts' expectations, but the Canadian yoga wear maker said that a key revenue metric's growth will slow in the fourth quarter. Its fourth-quarter earnings and revenue forecasts also came in below Wall Street's view.

The company also named William Glenn as a board member, expanding the board's size to 10 directors. Glenn is president of global commercial services for American Express Co.

Lululemon Athletica Inc. said it earned $57.3 million, or 39 cents per share, in its third quarter ended Oct. 28. That compares with $38.8 million, or 27 cents per share, a year ago.

Analysts surveyed by FactSet forecast earnings of 37 cents per share.

Revenue increased 38 percent to $316.5 million from $230.2 million. Wall Street expected $305.6 million.

Revenue at stores open at least a year climbed 18 percent in the third quarter.

The company also said fourth-quarter revenue at stores open at least a year, a key gauge of a retailer's health, will be up in the high single digits. In the prior-year period the company reported a 28 percent increase in the figure.

The retailer expects fourth-quarter earnings of 71 cents to 73 cents per share on revenue in a range of $475 million to $480 million. Analysts polled by FactSet predict earnings of 75 cents per share on revenue of $490.4 million.

Lululemon expects full-year earnings of $1.81 to $1.83 per share on revenue between $1.36 billion and $1.37 billion.

Wall Street forecasts earnings of $1.81 per share on revenue of $1.36 billion.

Shares rose $1.27, or 1.9 percent, to $69.86 in premarket trading after falling as low as $63.60 earlier.

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