Lululemon raises revenue guidance, but lowers expectations for gross margins

VANCOUVER –

Lululemon Athletica Inc. raised its income steerage for its fourth quarter, however lowered its expectations for its gross margins.

The firm, which retains its books in U.S. {dollars}, says it expects internet income for the quarter will likely be in a variety of US$2.66 billion to US$2.7 billion, in contrast with its earlier steerage for a variety of US$2.605 billion to US$2.655 billion.

The steerage implies a rise in income of 25 to 27 per cent in contrast with the identical quarter a yr earlier.

However, the corporate says it expects its gross margins for its fourth quarter to say no in contrast with earlier expectations that they’d rise.

The athletic clothes maker says it expects gross margins for the fourth quarter of its 2022 monetary yr to say no 90 to 110 foundation factors in contrast with earlier expectations for a rise of 10 to twenty foundation factors. (A foundation level is one-hundredth of a proportion level.)

Lululemon’s diluted earnings per share are actually anticipated to be in a variety of US$4.22 to US$4.27 for the quarter in contrast with the corporate’s earlier steerage for a variety of US$4.2 to US$4.3.

This report by The Canadian Press was first printed Jan. 9, 2023.