Finance

Lululemon forecasts fourth-quarter earnings and sales at the top end of outlook thanks to strong holidays

Pedestrians seen walking past Canadian athletic apparel retailer Lululemon in Shanghai.

Alex Tai | SOPA Images | LightRocket | Getty Images

Lululemon said Monday it’s now expecting earnings and sales for the fourth quarter to come in at the high end of its prior outlook, thanks to strong performance during the holidays.

Ahead of virtual meetings this week with analysts and investors at the annual ICR Conference, the company said it’s calling for adjusted earnings per share to grow at the high end of its previously announced mid- single-digit expectations. Net revenue for the quarter ending Jan. 31 is expected to grow at the high end of its mid- to high-teens expectations, it said in a statement.

Lululemon shares were down more than 2% in premarket trading Monday. The stock has climbed more than 54% over the past 12 months.

“We’re pleased with the momentum over the holiday period as our investments in lululemon and Mirror allowed us to connect with guests both physically and digitally,” Chief Executive Calvin McDonald said in a statement.

In December, Lululemon reported fiscal third-quarter sales of $1.1 billion, representing growth of 22% year over year.

Lululemon has not offered an outlook for the full year due to the ongoing effects of the Covid pandemic.

Read the full release from Lululemon.