Lululemon (LULU.US) boosts Q4 revenue and profit guidance following robust holiday sales.

Lululemon Athletica (LULU.US) announced on Monday that it now expects revenue in the fourth quarter of 2024 to be between $3.56 billion and $3.58 billion (up 11% to 12% YoY), higher than the previous forecast of $3.475 billion to $3.51 billion, and also higher than the consensus analyst estimate of $3.47 billion. At the same time, Lululemon expects diluted EPS in the fourth quarter to be between $5.81 and $5.85, higher than the previous forecast of $5.56 to $5.64, and also higher than the consensus analyst estimate of $5.66. The company also expects gross margin in the fourth quarter to increase by 30 basis points YoY, compared with the previous forecast of a decrease of 20 to 30 basis points; it expects SG&A expenses in the fourth quarter to decrease by 80 to 90 basis points YoY. Lululemon CEO Meghan Frank said, "Our customers responded well to our products during the holiday period, allowing us to raise our fourth-quarter performance expectations." The news boosted Lululemon's shares nearly 3% before the market opened on Monday.