© Reuters. FILE PHOTO: The emblem for Lululemon Athletica is seen at a retailer in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly/File Photograph
By Annett Mary Manoj and Ananya Mariam Rajesh
(Reuters) -Lululemon Athletica Inc on Thursday forecast fourth-quarter outcomes under expectations, placing a cautious tone for the vacation season and sending shares of the premium attire retailer down 2% in prolonged buying and selling.
The forecast, after a robust third-quarter present, mirrors sentiments from different U.S. retailers comparable to Walmart (NYSE:), Finest Purchase (NYSE:) and Kohl’s (NYSE:) which have hinted at a extra cautious client and a uneven begin to the essential vacation quarter.
Though Thanksgiving weekend gross sales confirmed optimism amongst clients, some have both largely in the reduction of on spending or are ready to buy nearer to Christmas to get higher offers.
“The company is not giving up on pricing while their competitors are…especially during this holiday centered season,” Dave Wagner, portfolio supervisor at Aptus Capital Advisors stated.
He added, “the consumer is starting to hurt a little bit and even though they (Lululemon (NASDAQ:)) focus more on the high-end consumer, they are probably seeing just a little less top line sales right now.”
Lululemon has caught to full-price promoting in an effort to drive revenues.
It beat third-quarter outcomes and raised annual forecasts, which herald focus the buoyant demand for the corporate’s comfy clothes in addition to equipment like belt baggage.
“We did experience some very strong performance during our Cyber Five period,” stated CFO Meghan Frank in a submit earnings name and added the corporate was “mindful of the macroeconomic environment” heading into fourth quarter, which has led it to information extra prudently.
The corporate expects fourth-quarter web income between $3.14 billion and $3.17 billion, under analysts’ common estimate of $3.18 billion, in keeping with LSEG knowledge.
Fourth-quarter revenue forecast between $4.85 and $4.93 per share got here in under expectations of $4.94 per share.
Insider Intelligence analyst Rachel Wolff stated “the retailer’s solid foot traffic trends during Black Friday indicate that the company is well-positioned to maintain its momentum during the holiday quarter.”
Lululemon expects full-year 2023 revenue between $12.34 and $12.42 per share and income between $9.55 billion and $9.59 billion.
