• Q3 earnings drop to US$60.5m
  • Net sales up 10%
Lululemon Athletica have booked earnings that beat analyst expectations

Lululemon Athletica have booked earnings that beat analyst expectations

Canadian yoga wear brand Lululemon Athletica has revealed third-quarter earnings that beat expectations but trimmed its full-year sales forecast.

Net income for the quarter ended 2 November amounted to US$60.5m, or $0.42 per share, compared to earnings of $66.1m, or $0.45 per share, in the year ago period. Analysts on average had expected earnings of $0.38 per share.

Net revenue was up 10% to $419.4m from $379.9m a year ago, while comparable sales dropped 3% on a constant dollar basis. Direct to consumer revenue increased 18.4%.

CEO Laurent Potdevin, said: "I am pleased that our third-quarter results demonstrated sequential improvements as the quarter progressed, with all key facets of our business - brand, guest experience, and product - contributing to our momentum.

"I am confident that our strong team, coupled with strategic investments into our core business areas, have already made a positive impact and place us on a strong trajectory for further global growth."

The company raised its adjusted profit forecast to $1.74-$1.78 per share from $1.72-$1.77 for the year ending February.

It's revenue forecast, however, was cut to $1.77bn-$1.78bn from $1.78bn-$1.80bn previously. This includes a $15m impact due to West Coast port delays, a lower Canadian dollar and delayed store openings.

Click on the following link for further insight on Lululemon's third-quarter performance: IN THE MONEY: Lululemon confident of turning a corner.