Canadian yogawear retailer Lululemon Athletica has upped its full-year guidance on the back of a rise in both profit and revenue in the third quarter.
For the quarter ended 28 October, net income soared 60.3% to $94.4m from $58.9m last year, while gross margin was 54.4%, an increase of 240 basis points compared to the third quarter of fiscal 2017.
The Vancouver, British Columbia-based company reported a 21% hike in net revenue, with sales totalling $747.7m, compared to $619m in the year-ago period. Total comparable sales increased 17%, while comparable store sales were up 6% for the period. Direct-to-consumer sales jumped 44%.
“Lululemon has achieved a high level of success over the past year and has established a solid foundation to continue to build our future,” said CEO Calvin McDonald. “It’s been exciting to see guests around the world respond so strongly to our product offerings and improved digital experience. I look forward to what’s ahead for our brand as we strive to exceed the expectations of our guests.”
COO Stuart Haselden added the company is pleased with its third-quarter results and the “strong momentum” it continues to see across the business.
“These results reflect the strategic investments we’ve made, and continue to make, to achieve our long-term growth objectives,” he said.
For the fourth quarter, the company is forecasting net revenues in the range of $1.11bn-$1.12bn based on a total comparable sales increase in the high-single to low-double digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of $1.64 to $1.67.
For the full year, net revenue is expected to be in the range of $3.23bn-$3.24bn based on a total comparable sales increase in the mid-teens on a constant dollar basis. Diluted earnings per share are expected to be in the range of $3.61 to $3.64.