Lululemon Athletica updates Q4 revenue guidance

Lululemon Athletica has updated its net revenue and earnings guidance for the fourth quarter of fiscal 2015 ending January 31, 2016. For the fourth quarter, it now anticipates that net revenue will be in the range of 690 million dollars to 695 million dollars, which represents an increase of approximately 15 percent compared to the fourth quarter of fiscal 2014, or on a constant dollar basis, an increase of approximately 19 percent.

"We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks. Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance," said Laurent Potdevin, CEO of Lululemon Athletica.

Fourth quarter expectation is based on a total comparable sales increase in the high-single digits on a constant dollar basis. This compares to the company’s previous guidance of net revenue in the range of 670 million dollars to 685 million dollars based on a total comparable sales increase in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 0.78 dollar to 0.80 dollar for the quarter against the previous EPS guidance of 0.75 dollar to 0.78 dollar.