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The Q3 cycle is over, with the bulk of companies already revealing their quarterly results. The period was again another of positivity, with earnings growth remaining positive and seeing a nice boost from technology.
But one late reporter, lululemon (LULU - Free Report) , posted results that positively shocked investors. Let’s take a closer look at the results.
Lulu Enjoys Profitability Boost
Concerningheadline figures in its release, LULU posted a 7% beat relative to the Zacks Consensus EPS estimate and reported sales 2% ahead of expectations, with both items higher than the year-ago period.
Still, the biggest highlight of the release was margin expansion, with the company’s gross margin improving 150 basis points to 20.5%. Gross profit totaled $1.4 billion, climbing a solid 12% year-over-year.
In addition, comparable store sales increased 4% year-over-year, reflecting that their existing location are still experiencing modest growth. And lululemon added 28 new stores throughout the period, expanding its footprint nicely.
The results perked up shares in a big way, a welcomed development among investors following a rough start to 2024. Up 60% in three months, the stock has bounced back in a big way following a tough start, widely outperforming over the time period. Below is a chart illustrating the year-to-date performance of shares.
Image Source: Zacks Investment Research
Lululemon wrapped up the strong print by announcing a $1 billion increase to its existing buyback program, which can help put in a floor for shares.
Bottom Line
Lululemon (LULU - Free Report) helped send the Q3 earnings cycle off in positivity, with the company’s results pleasing investors and causing shares to melt higher following the print.
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What's Going On With LULU Shares?
The Q3 cycle is over, with the bulk of companies already revealing their quarterly results. The period was again another of positivity, with earnings growth remaining positive and seeing a nice boost from technology.
But one late reporter, lululemon (LULU - Free Report) , posted results that positively shocked investors. Let’s take a closer look at the results.
Lulu Enjoys Profitability Boost
Concerningheadline figures in its release, LULU posted a 7% beat relative to the Zacks Consensus EPS estimate and reported sales 2% ahead of expectations, with both items higher than the year-ago period.
Still, the biggest highlight of the release was margin expansion, with the company’s gross margin improving 150 basis points to 20.5%. Gross profit totaled $1.4 billion, climbing a solid 12% year-over-year.
In addition, comparable store sales increased 4% year-over-year, reflecting that their existing location are still experiencing modest growth. And lululemon added 28 new stores throughout the period, expanding its footprint nicely.
The results perked up shares in a big way, a welcomed development among investors following a rough start to 2024. Up 60% in three months, the stock has bounced back in a big way following a tough start, widely outperforming over the time period. Below is a chart illustrating the year-to-date performance of shares.
Image Source: Zacks Investment Research
Lululemon wrapped up the strong print by announcing a $1 billion increase to its existing buyback program, which can help put in a floor for shares.
Bottom Line
Lululemon (LULU - Free Report) helped send the Q3 earnings cycle off in positivity, with the company’s results pleasing investors and causing shares to melt higher following the print.