Lululemon shares down 10% following FY25 outlook

Lululemon Regent Street store Credits: Lululemon Shares of Lululemon Athletica Inc. (LULU) were trading 10 percent down on Thursday's extended trading after the company revealed fiscal 2025 outlook below the Street expectations. The company's fourth quarter results came in better than last year. Meghan Frank, Chief Financial Officer, stated, "We look forward to building on our growth in 2025, while remaining agile as we navigate ongoing macro uncertainties." For the first quarter of 2025, the Canadian apparel company expects earnings per share in the range of $2.53 to $2.58. Revenues are projected to be between $2.34 billion and $2.36 billion, representing growth of 6% to 7%. Analysts, on average, expect the company to record revenues of $2.36 billion. Analysts' estimates, typically, exclude special items. For fiscal 2025, Lululemon Athletica projects earnings between $14.95 and $15.15, and revenues in the range of $11.15 billion to $11.30 billion, representing growth of 5 percent to 7 percent, or 7 percent to 8 percent excluding last year's 53rd week. Analysts expect the company to earn $15.54 per share on revenues of $11.31 billion for the year ahead. In fiscal 2024, earnings per share were $14.64 and revenues were $10.59 billion. In its fourth quarter, Lululemon's earnings totalled $748.40 million, or $6.14 per share, higher than last year's $669.47 million, or $5.29 per share. Analysts had expected the company to earn $5.87 per share. The company's revenue for the period rose 13 percent to $3.61 billion from $3.21 billion in the previous year. On the NYSE, the stock declined 10 percent in Thursday's after-hours to trade at $307.00. LULU closed Thursday's regular trade at $341.53, up 1.11 percent.

Mar 28, 2025 - 09:13
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Lululemon shares down 10% following FY25 outlook
Lululemon Regent Street store
Lululemon Regent Street store Credits: Lululemon

Shares of Lululemon Athletica Inc. (LULU) were trading 10 percent down on Thursday's extended trading after the company revealed fiscal 2025 outlook below the Street expectations. The company's fourth quarter results came in better than last year.

Meghan Frank, Chief Financial Officer, stated, "We look forward to building on our growth in 2025, while remaining agile as we navigate ongoing macro uncertainties."

For the first quarter of 2025, the Canadian apparel company expects earnings per share in the range of $2.53 to $2.58.

Revenues are projected to be between $2.34 billion and $2.36 billion, representing growth of 6% to 7%. Analysts, on average, expect the company to record revenues of $2.36 billion. Analysts' estimates, typically, exclude special items.

For fiscal 2025, Lululemon Athletica projects earnings between $14.95 and $15.15, and revenues in the range of $11.15 billion to $11.30 billion, representing growth of 5 percent to 7 percent, or 7 percent to 8 percent excluding last year's 53rd week.

Analysts expect the company to earn $15.54 per share on revenues of $11.31 billion for the year ahead.

In fiscal 2024, earnings per share were $14.64 and revenues were $10.59 billion.

In its fourth quarter, Lululemon's earnings totalled $748.40 million, or $6.14 per share, higher than last year's $669.47 million, or $5.29 per share. Analysts had expected the company to earn $5.87 per share.

The company's revenue for the period rose 13 percent to $3.61 billion from $3.21 billion in the previous year.

On the NYSE, the stock declined 10 percent in Thursday's after-hours to trade at $307.00. LULU closed Thursday's regular trade at $341.53, up 1.11 percent.