Lululemon Athletic Inc. (LULU) - Get lululemon athletica inc. Report shares slipped lower Monday after the retailer updated its fourth quarter earnings and revenue guidance ahead of a key investor conference.
Lululemon said it expects earnings for its fiscal fourth quarter, which ends in January, to grow at "the high end of its mid-single digits expectation" laid out in early December. Group revenues, Lululemon said, will likely grown "at the high end of its mid-to-high teens expectation".
“We’re pleased with the momentum over the holiday period as our investments in lululemon and MIRROR allowed us to connect with guests both physically and digitally," said CEO Calvin McDonald ahead of the group's presentation to the ICR investor conference later today. "We remain confident about our opportunities in 2021 and committed to our Power of Three growth plan.”
Lululemon shares were marked 1.75% lower in early trading following the update to change hands at $359.00 each, a move that would trim the stock's six-month gain to around 17%.
Lululemon boosted its holiday-quarter forecasts on December 11, just hours after it posted Street-beating earnings of $1.16 per share on a 22% gain in revenues to $1.12 billion.
Labor Department data published Friday suggests the services sector was hit hard by pandemic related restrictions last month, which resulted in nearly 500,000 jobs last in the leisure and hospitality sector.
Retail, however, added added 121,000 new jobs over the month, indicating the potential for better-than-expected foot traffic figures over the holiday shopping period.
Lululemon, however, has also seen a notable surge in online sales, which rose by an annual rate of 93% last quarter, and are expected to offset any declines in in-store volumes over the fourth quarter.