Lululemon Athletica Inc has raised its fiscal fourth-quarter outlook following what it described as a stronger-than-expected performance during the Christmas and holiday shopping period, signalling resilience in demand for its athletic and lifestyle apparel.
The Vancouver-based apparel retailer now expects net revenue and diluted earnings per share for the quarter ending 1st February to reach the upper end of its previously issued guidance ranges, reflecting solid holiday trading. The company had earlier forecast fourth-quarter revenue in a range of US $ 3.50 billion to US $ 3.59 billion and diluted earnings per share between US $ 4.66 and US $ 4.76; its updated outlook anticipates performance gravitating towards the top of those bands. The guidance does not incorporate changes to projections for gross margin, operating expenses or the effective tax rate.
Lululemon’s chief financial officer, Meghan Frank, said the updated expectation was based on the company’s performance over the holiday season, which includes key retail periods such as Black Friday and Boxing Day. She noted that the revised outlook reflects continued execution of the firm’s strategic plan, particularly efforts to strengthen performance in the United States while maintaining operational discipline.
The stronger outlook comes amid ongoing challenges for the brand, including heightened competition in the premium activewear segment and internal leadership changes. Chief executive officer Calvin McDonald is scheduled to step down at the end of January, with interim leadership arrangements in place as the company conducts a search for his successor.
Analysts said the improved guidance underscores Lululemon’s ability to leverage peak seasonal demand, even as broader market conditions remain uncertain. Investors will be closely watching whether this momentum can extend into the fiscal year ahead, particularly as the company continues to expand its international presence and product offerings.
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