Market reacts to Lululemon's quarterly results

Lululemon Athletica releases its Q3 earnings, beating street estimates on both revenue and earnings per share.

Video Transcript

ADAM SHAPIRO: We've got to get to Emily McCormick, though, because we have earnings from Lululemon. What are they telling us?

EMILY MCCORMICK: Well, Adam, here, we're taking a look at Lulu's third quarter earnings results, topping expectations on both the top and bottom lines and the company also raising its full year forecast on both the top and bottom lines as well here.

But diving into these numbers, net revenue growing 32% year on year to reach $1.45 billion. That was just a tick below consensus estimates for $1.44 billion. And then on the bottom line, adjusted earnings per share $1.62 versus the estimate for $1.40. Now taking a look here for this updated full year forecast, the company is seeing adjusted earnings per share between $7.69 to $7.76. Previously, it saw as much as $7.48.

Taking a look at some commentary here from Calvin McDonald, the CEO of Lulu, him saying in the earnings statement, quote, "Our third quarter results demonstrate the ongoing strength of Lululemon and the tremendous growth potential of the business in both the near and long term. We're pleased with our early holiday season performance and how the Lululemon brand continues to resonate in markets around the world."

Now taking a look at the stock here, fluctuating between small gains and losses, as investors digest these results, though we should note that that stock is up about 20% so far for the year to date, Adam.