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Lululemon jumps 11% on earnings; CEO departs
Lululemon Athletica beat third-quarter expectations, with shares jumping over 11% after-hours as the company announced the departure of CEO Calvin McDonald. McDonald joined the athleisure brand in 2018 and is set to step down from his role on 31 January 2026. While no permanent successor is in place, chief financial officer, Meghan Frank and chief commercial officer André Maestrini will serve as interim co-CEOs to ensure a smooth transition. This comes as the company announces better-than-expected third-quarter earnings. While the company found growth globally, it is still struggling to build growth in the Americas, its biggest market. While comparable sales increased 1% or 2% on a constant dollar basis, and international sales grew 18%, comparable sales in the Americas decreased by 5%. Overall net revenue rose 7% to US$2.6 billion, surpassing analysts' projections of $2.48 billion. Despite this, net revenue in the Americas fell 2%. Adjusted earnings per share of $2.59 also topped estimates of $2.21 according to FactSet. However, this fell below the $2.87 per share that the company reported the same time last year. "We delivered better-than-expected revenue and EPS in the third quarter as a result of our
Fashion
Ulta Beauty raises full year guidance after strong Q3
Ulta Beauty has raised its full-year sales outlook following a better-than-expected fiscal third quarter. The beauty retailer reported a 12.9% increase in revenue year-over-year to US$2.9 billion, surpassing expectations of US$2.72 billion. The company said this is mainly due to increased comparable sales, the acquisition of Space NK and net new store contribution. Earnings per share remained even with last year’s results at US$5.14, but beat Wall Street expectations of US$4.64. “Exciting assortment newness, improved in-store and digital experiences, and bold marketing efforts are resonating with our guests and drove strong sales results, market share gains, and growth across all categories and channels, with notable strength in ecommerce,” Ulta Beauty president and CEO, Kecia Steelman, said. Following positive results, Ulta has raised its guidance for fiscal 2025. The company now expects net income of around US$12.3 billion, an upgrade from the previously forecasted US$12 to US$12.1 billion. The outlook for diluted earnings per share has also jumped from between US$23.85 and US$24.30 to between US$25.20 and US$25.50. According to Circana research, beauty sales in the U.S. have been strong this year, with p
Fashion
Gap's comparable sales rise for 7th straight quarter
Gap attributes rise in comparable sales during its third quarter to its viral “Better in Demin” campaign with girl group Katseye. Comparable sales were up 5% year-over-year and net sales reached US$3.94 billion, marking a 3% rise from last year and beating Wall Street expectations of US$3.91 billion. "Our strategy is working and our brands are gaining momentum with our three largest brands - Old Navy, Gap, and Banana Republic - each posting strong comparable sales,” Gap CEO and president Richard Dickson said. When putting aside pandemic-related spikes, this is the strongest growth in comparable sales for the business since 2017 and well ahead of Wall Street Expectations of 3.1% according to Street Account. Comparable sales for the business have increased for the past seven quarters. The only Gap brand that didn’t rise in comparable sales was its athleisure brand Athleta, which fell by 11%. However, despite rising profitability, Gap has also faced difficulty from tariffs, with its gross margin and net profit taking a hit. The company’s gross margin fell 0.3 percentage points to 42.4%, which is still higher than expectations of 41.2%. Gap’s net income declined by 14% to US$236 million, which the company’s fin
Fashion
Prada eyes future acquisitions after Versace takeover
Prada CEO Lorenzo Bertelli said the luxury fashion brand is considering further acquisitions after its takeover of the Italian fashion house Versace. Bertelli did not rule out potential interest in Giorgio Armani, which has been in the spotlight since the founder and namesake passed away in September. In Armani’s will, he stated that heirs must gradually sell the fashion house or seek a listing, starting with a 15% stake within 12 to 18 months of his death. Bertelli’s interest in Giorgio Armani comes as Prada prepares to finalise its US$1.4 billion acquisition of Versace, marking the largest purchase in Prada’s 112-year history. In an interview with Reuters, Bertelli said if opportunities arise, he would look at them, but said Prada’s current focus was on returning Versace to its former glory. Bertelli said the acquisition of Versace was a “strategic choice”. “The brand is much bigger than its revenue,” he said. “We like difficult missions so we are trying to bring the business back to the greatness of the brand that it once was.” Following the buy-out, Bertelli will become executive chairman of Versace. The acquisition also positions Prada to become one of Italy’s biggest luxury firms and counter a tren
Fashion
Skims reaches US$5bn valuation following funding
Kim Kardashian’s Skims has reached a valuation of US$5 billion (A$7.61 billion) after raising $225 million in new capital. The latest fundraising has made Skims larger than both of its largest competitors, Victoria’s Secret and Under Armour, combined, which are valued at US$2.86 billion and $1.98 billion, respectively. It also comes as the company, which was founded in 2019, said it expects to exceed $1 billion in net sales. “This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions Skims to unlock its next phase of growth,” co-founder and CEO Jens Grede said in a statement. Skims said it plans to use the new capital to accelerate brick and mortar and international expansion alongside product innovation and category diversification. Currently, the company has 18 stores across the U.S. with plans to expand internationally in 2026. The latest fundraising round was led by investment giant Goldman Sachs Alternatives with participation from BDT & MSD. This follows Coty taking a 20% stake in Skims earlier this year, bringing it under the same umbrella as her beauty brand SKKN by Kim. Skims also partnered with Nike to launch women’s activewear in Septemb

Fashion
Ralph Lauren raises guidance amid positive results
Designer clothing brand Ralph Lauren has raised its fiscal 2026 guidance after delivering better-than-expected second-quarter results. Sales for the brand rose by 14% year-over-year to US$2 billion, surpassing its high-single-digit outlook with growth driven by strong performance across all markets, including China. This also beat analysts' expectations of US$1.89 billion. Ralph Lauren saw sales increases in double digits across all geographies, with Asia growing by 16%, with China experiencing a 30% rise on its own, Europe by 15% and North America by 13%. "Our iconic brand and timeless products continue to resonate with consumers around the world, across generations and cultures, and we are reinforcing our inclusive luxury lifestyle position with disciplined investments to drive sustainable long-term growth and value creation well beyond this fiscal year,” president and CEO Patrice Louvet said. The company joined the likes of LVMH, L’Oreal, Hermes and Estee Lauder in reporting improved sales in China, signalling hope in one of luxury fashion's biggest markets. Ralph Lauren’s positive sales increased due to lower promotions and cotton costs, and price hikes to counter higher tariffs and non-material cotton costs.
Fashion
E.l.f. Beauty sales rise; shares tank on weak guidance
E.l.f. Beauty sales rose by 14% year-over-year in its second fiscal quarter of 2026, greatly driven by its acquisition of Rhode Beauty. However, shares in the company tanked 20.5% in after-hours deals after revenue guidance came in far weaker than expected. This is the first earnings release the company has announced since acquiring Rhode Beauty last quarter. “Our Q2 results, which included 140 basis points of market share gains for our namesake e.l.f. brand and a record-breaking launch of rhode in Sephora North America, are a continuation of the consistent, category-leading growth we’ve delivered over the past 27 quarters,” Elf Chairman and CEO, Tarang Amin said. For the second quarter, net sales reached US$343.9 million. Despite this being an increase year-over-year, this missed Wall Street guidance of US$366 million. Revenues for the company were driven by U.S. sales, which surged by 18% while international sales were also up by 2%. The company saw earnings of 68 cents per share, up from 33 cents per share a year earlier and surpassing expectations of 57 cents per share. During the earnings call, CFO Mandy Fields also pointed to Rhode as a standout for the business. “The launch was [by far] the second be
Fashion
Estee Lauder wins back key markets in latest earnings
Estee Lauder has released earnings for the first fiscal quarter of 2026, confirming that the strategies of the new CEO, Stephane de La Faverie, are taking hold. The New York beauty brand delivered a profit of US$47 million or 13 cents per share, marking a massive turnaround from a loss of US$156 million or 43 cents the same time last year. Adjusted earnings per share surpassed Wall Street expectations of 18 cents, coming in at 32 cents per share. The company also reported a net sales increase of 4% to US$3.5 billion. The strong results come after the beauty giant said it would lay off around 7,000 workers following a slump in sales in key Chinese and Korean markets. This comes as the company regains market share in China across all categories and experiences its third consecutive quarter of share gains in skin care, makeup, and fragrance in the U.S. “We had a strong start to fiscal 2026 as we execute on our Beauty Reimagined strategy—returning to organic sales growth, gaining prestige beauty share in a few key strategic areas of focus, and improving profitability,” de La Faverie said. “Encouragingly, we are building momentum across the organisation from the significant operational changes we have executed to d
Fashion
Lululemon doubles down in sport with NFL collection
Lululemon Athletica Inc Is extending its push into the sporting apparel market by announcing it will sell products for the National Football League (NFL) and its teams. Lululemon said the “elevated apparel collection” would be the first time it had offered officially licensed products for the NFL or any of its 32 teams. The Canadian company said the collection would feature men’s and women’s apparel and accessories showcasing signature team marks in a deal that includes sports merchandising company Fanatics. “True NFL fans wear their pride. For them, fan gear is more than apparel, it’s a badge of loyalty and a way to instantly connect with a community that is like a family,” Lululemon Americas and Global Guest Innovation President Celeste Burgoyne said in a statement. “We looked to honour that passionate devotion and are thrilled to be part of that ritual found throughout the NFL season.” The assortment features core lululemon products from its Steady State men’s franchise and women’s styles from Define, Scuba and Align, among others. “Together with Fanatics, we are introducing an elevated collection that redefines modern fan apparel and is uniquely designed for everyday comfort,” NFL Executive Vice President and