Lululemon Athletica Inc. LULU posted better-than-expected results for its fourth quarter, but issued a weak forecast for the first quarter on Thursday.
Lululemon’s fourth-quarter revenue increased 16% year-over-year to $3.205 billion, which beat the consensus estimate of $3.194 billion, according to Benzinga Pro. The athleisure company reported quarterly earnings of $5.29 per share, which beat analyst estimates of $4.97 per share.
“During the fourth quarter, we saw continued momentum across our channels, geographies, and merchandise categories, driven by our teams around the world,” said Calvin McDonald, CEO of Lululemon. “As we step into 2024, we are focused on the significant opportunities ahead for lululemon as we navigate the dynamic retail environment and deliver for guests through innovative new products and brand activations.”
The company said it sees first-quarter revenue in the range of $2.175 billion to $2.2 billion versus estimates of $2.25 billion. The company anticipates first-quarter earnings of $2.35 to $2.40 per share versus estimates of $2.55 per share, according to data from Benzinga Pro.
Lululemon Athletica shares dipped 13.7% to $413.50 in pre-market trading.
These analysts made changes to their price targets on Lululemon following earnings announcement.
- TD Cowen cut the price target on Lululemon from $553 to $515. TD Cowen analyst John Kernan maintained an Outperform rating.
- Needham slashed the price target on Lululemon from $525 to $500. Needham analyst Anna Andreeva maintained a Buy rating.
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