Lululemon beats on profits however problems underwhelming steerage

Lululemon beat Wall Side road expectancies for fiscal fourth-quarter profits and earnings, however issued 2025 steerage that disenchanted analysts.

Stocks of the attire corporate fell about 6% in prolonged buying and selling.

Right here’s how the corporate did when put next with what Wall Side road used to be anticipating for the quarter ended Feb. 2, according to a survey of analysts via LSEG:

• Profits in line with proportion: $6.14 vs. $5.85 anticipated
• Income: $3.61 billion vs. $3.57 billion anticipated

Fourth-quarter earnings rose from $3.21 billion right through the similar length in 2023. Complete-year 2024 earnings got here in at $10.59 billion, up from $9.62 billion in 2023.

Lululemon’s fiscal 2024 contained 53 weeks, one presen longer than its fiscal 2023. Except for the 53rd presen, fourth-quarter and full-year earnings each rose 8% yr over yr for 2024.

Lululemon expects first-quarter earnings to general $2.34 billion to $2.36 billion, occasion Wall Side road analysts had been anticipating $2.39 billion, in line with LSEG. The store anticipates it is going to publish full-year fiscal 2025 earnings of $11.15 billion to $11.30 billion, in comparison to the analyst consensus estimate of $11.31 billion.

For the primary quarter, the corporate expects to publish profits in line with proportion within the territory of $2.53 to $2.58, lacking Wall Side road’s expectation of $2.72, in line with LSEG. Complete-year profits in line with proportion steerage got here in at $14.95 to $15.15 in line with proportion, occasion analysts expected $15.31.

Lululemon reported a internet source of revenue for the fourth quarter of $748 million, or $6.14 in line with proportion, when put next with a internet source of revenue of $669 million, or $5.29 in line with proportion, right through the fourth quarter of 2023.

Related gross sales, which Lululemon defines as earnings from e-commerce and retail outlets unmistakable no less than three hundred and sixty five days, rose 3% yr over yr for the quarter. The comparability excludes the 53rd presen of the 2024 fiscal yr. Analysts anticipated the metric to get up 5.1%.

Related gross sales within the Americas had been flat, occasion they grew 20% across the world.