Canada's Lululemon forecasts 14-15% revenue growth in Q4 FY23

09 Jan '24

2 min read

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Insights

Lululemon Athletica anticipates Q4 FY23 net revenue of $3.170-$3.190 billion, a 14-15 per cent increase from FY22, exceeding previous estimates of $3.135-$3.170 billion.
Diluted earnings per share are expected to be $4.96-$5, up from the earlier forecast of $4.85-$4.93.
The company also projects a higher gross margin of 58.6-58.7 per cent.

Canadian apparel retailer Lululemon Athletica now expects its net revenue for the fourth quarter of fiscal 2023 (Q4 FY23) to be between $3.170 billion and $3.190 billion. This forecast represents a substantial 14 per cent to 15 per cent increase compared to the same quarter in fiscal 2022 and is an upward revision from their previous projection of $3.135 billion to $3.170 billion.

In terms of profitability, Lululemon Athletica has revised its expectations for diluted earnings per share, now anticipating them to be in the range of $4.96 to $5 for Q4 FY23. This updated range shows an improvement over the previously guided range of $4.85 to $4.93, the company said in a media release.

Additionally, the company forecasts a higher gross margin for the quarter, expecting it to be in the range of 58.6 per cent to 58.7 per cent, which is a slight increase from the prior guidance of 58.3 per cent to 58.6 per cent.

“We are pleased with our performance during the holiday season, as guests continue to respond well to our innovative and versatile product offerings. Our sales trend remains balanced across channels, categories, and geographies, enabling us to raise our guidance for the fourth quarter and close out another strong year,” said Meghan Frank, chief financial officer.

Fibre2Fashion News Desk (DP)

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