Lululemon Athletica Inc. (NASDAQ:LULU) has revised its guidance for the fourth quarter of fiscal 2023.
The company now anticipates net revenue in the range of $3.17 billion to $3.19 billion, reflecting a 14% to 15% increase compared to the same period in fiscal 2022. This exceeds the previous guidance range of $3.135 billion to $3.17 billion.
Still, LULU shares fell 1.7% on the news.
Diluted earnings per share for the fourth quarter of fiscal 2023 are now expected to be in the range of $4.96 to $5.00, surpassing the earlier guidance range of $4.85 to $4.93.
Analysts were looking for sales of $3.18 billion and EPS of $4.97.
Lululemon's gross margin projection for the fourth quarter of fiscal 2023 has been adjusted to a range of 58.6% to 58.7%, up from the previous guidance of 58.3% to 58.6%.
Meghan Frank, Chief Financial Officer, commented: “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.”
The company’s management will attend the ICR Conference, which is due on January 8-10, 2024.