Lululemon Stock Surges On Strong Q3 Earnings And Outlook
Lululemon Athletica (NASDAQ:LULU) stock is trading higher in Friday morning trading as the athletic apparel retailer delivered a strong third-quarter earnings beat and raised its full-year outlook, overcoming concerns about sluggish North American sales. Here’s what investors need to know.
- Lululemon Athletica shares are powering higher. Why is LULU stock up today?
What To Know: For the third quarter, Lululemon reported earnings per share of $2.59, surpassing analyst estimates of $2.27 by over 14%. Revenue climbed to $2.57 billion, beating the Street's $2.48 billion forecast.
While net revenue in the Americas dipped 2%, the company saw robust momentum abroad, with international revenue jumping 33% and international comparable sales increasing 18%.
Investors also cheered the company's updated guidance. Lululemon raised its fiscal 2025 revenue outlook to between $10.96 billion and $11.05 billion and boosted its EPS forecast to a range of $12.92 to $13.02. Additionally, the board authorized a $1 billion increase to its share repurchase program.
The positive financial results arrived alongside major leadership news: CEO Calvin McDonald will step down on Jan. 31, 2026. CFO Meghan Frank and CCO André Maestrini will serve as interim co-CEOs while a successor is sought.
Wall Street reacted favorably to the report. Jefferies upgraded the stock from Underperform to Hold, raising its price target to $170. Meanwhile, BofA Securities and Telsey Advisory Group maintained their ratings but lifted their respective price targets to $220 and $215.
Benzinga Edge Rankings: Data from Benzinga Edge highlights the company’s underlying potential with a robust Growth score of 91.66, signaling strong expansion prospects despite mixed momentum indicators.
LULU Price Action: Lululemon Athletica shares were up 12.57% at $210.46 during premarket trading on Thursday, according to Benzinga Pro data.
The stock is currently trading approximately 18.7% above its 50-day moving average of $173.80, suggesting a robust short-term upward trend.
However, it is also trading about 11.1% below its 200-day moving average of $231.89, indicating that while the stock has gained momentum recently, it still faces longer-term resistance at higher price levels.
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