Lululemon Q3 Earnings: Revenue Beat, EPS Beat, $1B Buyback Increase, 'Continued Momentum' Across International Markets

Lululemon Athletica Inc LULU reported third-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q3 Earnings: Lululemon reported third-quarter revenue of $2.4 billion, beating the consensus estimate of $2.36 billion, according to Benzinga Pro. The athleisure company reported third-quarter earnings of $2.87 per share, beating analyst estimates of $2.70 per share.

Total revenue was up 9% on a year-over-year basis and total comparable sales increased 4% year-over-year. Americas net revenue increased 2% year-over-year, while international revenue jumped 33% year-over-year.

Lululemon’s total store count was 749 at the quarter’s end after opening 28 new company-operated stores during the quarter. Inventories were up 8% year-over-year to $1.8 billion. The company ended the quarter with $1.2 billion in cash and cash equivalents.

“Our performance in the third quarter shows the enduring strength of lululemon globally, as we saw continued momentum across our international markets and in Canada. Looking to the future, we are pleased with the start to our holiday season, and we remain focused on accelerating our U.S. business and growing our brand awareness around the world,” said Calvin McDonald, CEO of Lululemon.

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Lululemon said it repurchased 1.6 million shares during the quarter. The company’s board also approved a $1 billion increase to Lululemon’s stock repurchase program. As of Dec. 5, Lululemon had $1.8 billion remaining on its authorized buyback.

Guidance: Lululemon sees fourth-quarter revenue in the range of $3.475 billion to $3.51 billion versus estimates of $3.496 billion. The company anticipates fourth-quarter earnings of $5.56 to $5.64 per share.

Lululemon expects full-year revenue to be in the range of $10.452 billion to $10.487 billion. Full-year earnings are expected to be in the range of $14.08 to $14.16 per share.

Management will further discuss the quarter on a conference call with investors at 4:30 p.m. ET.

LULU Price Action: Lululemon shares were up 7.65% in after-hours, trading at $371.50 at the time of publication Thursday, according to Benzinga Pro.

Photo: Shutterstock.