Athletic apparel retailer Lululemon Athletica (NASDAQ:LULU) slipped in pre-market trading even as the company boosted its fourth-quarter guidance. The company now expects net revenues to be in the range of $3.17 billion to $3.19 billion, indicating a growth rate between 14% and 15% year-over-year. LULU’s prior guidance ranged from $3.14 billion to $3.17 billion. Analysts were estimating Q4 revenues of $3.19 billion.
The athleisure retailer has guided for diluted earnings between $4.96 and $5.00 per share in Q4 compared to its prior forecast in the range of $4.85 to $4.93 per share. Wall Street analysts were expecting earnings of $4.97 per share.
LULU also lifted its margin guidance and now anticipates that Q4 gross margin will be in the range of 58.6% to 58.7%, compared to its previous guidance of between 58.3% and 58.6%.
Is LULU a Buy or Sell?
Analysts remain bullish about LULU stock with a Strong Buy consensus rating based on 22 Buys, four Holds, and one Sell. Over the past year, LULU stock has surged by more than 60%, and the average LULU price target of $516.04 implies an upside potential of 5.1% at current levels.
