Lululemon (LULU) Surges 12% on Strong Q3 Earnings, Revenue

Lululemon Athletica Inc. LULU just released its third quarter fiscal 2016 financial results after the bell, posting diluted earnings of 47 cents per share and revenues of $544.4 million. LULU is a #3 (Hold) on the Zacks Rank, and is up 12.48% to $67.31 per share in after-hours trading.

Beat earnings estimates. The company reported diluted earnings of 47 cents per share, surpassing the Zacks Consensus Estimate of 43 cents per share. This number excludes three cents from non-recurring items.

Beat revenue estimates. The company saw revenues figures of $544.4 million, just edging past our consensus estimate of $543 million and increasing 13% year-over-year.

Lululemon reported total comparable sales, including comparable store sales and direct-to-consumer, of an increase of 7% for the quarter. Breaking it down, comps increased 4% while direct-to-consumer net revenue increased by 16% to $104.0 million.

For the fourth quarter, Lululemon expects net revenue to be in the range of $765 million to $785 million based on total comparable sales in the mid-single digits on a constant dollar basis. Diluted earnings per share are expected to be in the range of 96 cents per share to $1.01per share.

Here’s a graph that looks at Lululemon’s price, consensus, and EPS surprise:

LULULEMON ATHLT Price, Consensus and EPS Surprise

LULULEMON ATHLT Price, Consensus and EPS Surprise | LULULEMON ATHLT Quote

Lululemon designs and retails athletic clothing for women, men, and female youth. Its apparel assortment, including items like fitness pants, shorts, tops and jackets, is designed for activities such as yoga, running and general fitness. The Company's fitness-related accessories include an array of items such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs and water bottles. Lululemon is based in Vancouver, Canada.

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