Lululemon’s Stock Surges After Strong Holiday Sales Drive Up Earnings Outlook

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Lululemon Athletica’s stock saw a notable surge on Monday, with shares rising approximately 2.7% in early trading, following an unexpected boost to the company’s fourth-quarter earnings and revenue guidance.

This positive shift comes on the back of stronger-than-expected holiday sales performance, signaling continued consumer demand for its premium activewear.

The athletic apparel giant raised its revenue forecast to a range between $3.56 billion and $3.58 billion, up from its previous estimate of $3.475 billion to $3.51 billion.

The company also revised its earnings per share (EPS) projection to between $5.81 and $5.85, surpassing the prior guidance of $5.56 to $5.64.

“We are thrilled with the holiday sales results, which have exceeded our expectations and reinforced the strength of our brand,” said Lululemon CEO. “This revision reflects the continued consumer enthusiasm for our products and the growing demand across markets.”

The revised guidance marks a significant improvement over analysts’ expectations. According to FactSet, analysts were anticipating EPS of $5.66 per share on $3.473 billion in sales.

Furthermore, Lululemon also forecasted a 30-basis point increase in gross margin, reversing an earlier projection of a slight decrease in margins for the quarter.

As of the latest trading session on January 13, 2025, Lululemon’s stock, LULU, is priced at $395.28, reflecting a modest decrease of 0.05% from the previous close.

However, the company’s performance on the stock market has remained strong, and analysts remain optimistic about its continued growth trajectory.

Lululemon has long been a leader in the activewear market, and this latest update reinforces its resilience amid competitive pressures in the retail sector.

The company’s strategic focus on innovation, premium products, and an expanding global presence have kept it in high demand, especially during key shopping seasons like the holidays.

With the positive earnings guidance update, Lululemon’s outlook remains robust as it heads into the final stretch of its fiscal year, continuing to capitalize on strong demand in the athleisure market.

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