Justin Sullivan/Getty Images
Lululemon Athletica’s shares jumped 17% on Friday after the company said third-quarter revenue grew to $2.4 billion, a 9% increase over the same period last year.
The Canada-based athletic apparel company performed better than expected in the third quarter ending Oct. 27, posting $2.87 earnings per share versus the expected $2.69.
The company said it expects revenue in the fourth quarter between $3.48 billion and $3.51 billion, representing growth of 8% to 10%.
For the year, Lululemon said it expects revenue in the range of $10.45 billion to $10.48 billion.
“Our performance in the third quarter shows the enduring strength of lululemon globally, as we saw continued momentum across our international markets and in Canada,” said CEO Calvin McDonald.
“Looking to the future, we are pleased with the start to our holiday season, and we remain focused on accelerating our U.S. business and growing our brand awareness around the world,” he added.
At least 17 brokerage houses raised their price targets for Lululemon’s stock after the company posted third-quarter results, Reuters reported.
But there are warning signs for the company. Sales growth in the company’s important North American market continued to drop as the company faces increased competition.
The stock has been one of the worst performers in the S&P 500 this year, according to Yahoo Finance, as newer brands like Alo and Vuori attract some of Lululemon’s customers.
