Lululemon Soared Over 9% in After-hours on Outperforming Q3 Earnings

On Dec. 5, Canadian athletic apparel company Lululemon Athletica (NASDAQ: LULU) reported its financial results for the third quarter (Q3) of fiscal 2024 after the bell.

 

The results showed that net revenue rose 9% year-over-year (YoY) to $2.4 billion, beating analysts' expectations of $2.36 billion. The earnings per share (EPS) were $2.87, above the analyst estimate of $2.71. Thenet income jumped 41% YoY to $351 million.

 

Regarding the third-quarter results, Lululemon CFO Meghan Frank said they exceeded Lululemon's expectations. Looking ahead, Lululemon will try to achieve the Power of Three ×2 revenue target of $12.5 billion in 2026.

 

 

Concerning earnings prospects, Lululemon expected Q4 2025 revenue of $3.475 billion-$3.510 billion, matching the analyst forecast of $3.50 billion. It predicted Q4 2025 EPS of $5.56-$5.64, below the analyst expectation of $5.70. It elevated its full-year 2025 revenue forecast to $10.452 billion-$10.487 billion, exceeding its previous $10.375 billion-$10.475 billion. It estimated FY 2025 EPS of $14.08-$14.16, meeting the analyst expectation of $14.12.

 

Other than earnings, the report reflected a stock repurchase plan. During Q3 2024, Lululemon repurchased 1.6 million shares of common stock for $408.5 million. On December 3, 2024, the Board approved to add $1 billion to this plan. With this increase, as of December 5, 2024, the remaining authorized amount of Lululemon's stock buyback project was roughly $1.8 billion.

 

The report recalled Lululemon's “Power of Three × 2” goal of doubling its net revenue from $6.25 billion in 2021 to $12.5 billion in 2026 through product innovation, improved guest experience, and market expansion.

 

After releasing its earnings, Lululemon soared 9.19% after hours in the US market on Dec. 5.