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Lululemon surges to a fresh high after boosting its sales forecast (LULU)

Colin McConnell/Toronto Star via Getty Images

  • Lululemon on Monday raised its fourth-quarter fiscal 2019 revenue and earnings guidance after a solid holiday period. 
  • Shares of the retailer surged as much as 3.6% to a fresh all-time high. 
  • The athleisure retailer's strong performance comes amid mixed holiday sales reports from other retailers. It builds on a strong calendar 2019 for the company where shares nearly doubled. 
  • Watch Lululemon trade live on Markets Insider.

Shares of Lululemon surged as much as 3.6% Monday to a fresh all-time high after the company boosted its fiscal fourth-quarter 2019 revenue and earnings guidance. 

The athleisure retailer now expects that net revenue will be between $1.37 billion and $1.38 billion, up from its previous guidance range of $1.32 billion to $1.33 billion. 

"We're excited by the momentum in our business over the holiday period with guests responding well to our innovative merchandise offerings," Calvin McDonald, Lululemon CEO, said in a press release.  The company now expects quarterly comparable sales to increase in the mid-to-high teens on a constant dollar basis, a boost from its previous guidance of a low-double digit gain. 

Lululemon also boosted its guidance for diluted earnings per share for the quarter ending February 2 and is now expecting earnings per share of $2.22 to $2.25, an increase from the previous estimate of $2.10 to $2.13.

Lululemon's rosy outlook amid a strong holiday season is a bright spot after mixed holiday season results from other retailers. In January, department stores Kohl's and JCPenney reported weak holiday earnings that fell short of Wall Street expectations and sent shares down.

Macy's reported a smaller-than-expected slip in sales during the holidays, but then announced it would shutter 28 stores in an effort to boost profitability. 

Wall Street analysts are largely bullish on Lululemon. The company has a consensus price target of $245.31 and 21 "buy" ratings, 12 "hold" ratings, and one "sell" rating, according to Bloomberg data. 

Lululemon has gained roughly 1.4% year-to-date at Friday's close. It gained 91% in 2019.

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