Lululemon Stock Jumps on Strong Earnings, Improved Full-Year Outlook | Global News Avenue

Lululemon (Lulu) on Thursday beat expectations for third-quarter earnings and raised its full-year forecast, sending shares sharply higher in after-hours trading.

The sportswear company’s revenue rose 9% year over year to $2.4 billion, beating the consensus of analysts surveyed by Visible Alpha. Net income was $351.9 million, or $2.87 per share, compared with $248.7 million, or $1.96 per share, in the same period a year earlier. Profits also beat analysts’ forecasts.

After earnings improve CEO Calvin McDonald admitted the company last quarter “New” questionsthere are fewer seasonally updated products, resulting in lower conversion rates. This partly contributed to the 3% decline in the North American market Comparable store sales. North American same-store sales fell 2% during the quarter.

Lululemon raised its full-year revenue forecast to a range of US$10.452 billion to US$10.487 billion from the previous range of US$10.375 billion to US$10.475 billion.

Lululemon shares rose 10% in recent after-hours trading. The stock has lost about a third of its 2024 value as of Thursday’s close.