Lululemon athletica tanked 10.5% in extended trading on Thursday (Friday AEDT) as the athletic apparel retailer issued weaker-than-expected guidance, overshadowing a strong earnings beat.
The company posted earnings of $6.14 per share, above expectations of $5.85.
Revenue also exceeded forecasts, reaching US$3.61 billion compared to the estimated $3.58 billion.
Calvin McDonald, Chief Executive Officer, commented on the results: "Our fourth quarter results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment.
"Our performance demonstrates the ongoing strength and resilience of lululemon and is a testament to the passion and dedication of our teams around the world.
"As we begin 2025, we remain focused on executing on our Power of Three ×2 growth plan and delivering an exciting pipeline of innovation and brand activations for our guests and communities."
Despite the earnings beat, Lululemon's forward guidance disappointed investors. The company projected first-quarter revenue of $2.34 billion to $2.36 billion, below forecasts of $2.39 billion, according to LSEG.
Earnings per share for the first quarter are anticipated to range from $2.53 to $2.58, falling short of analysts’ expectations of $2.72.
For fiscal 2025, the retailer expects revenue between $11.15 billion and $11.30 billion, slightly missing consensus estimates of $11.31 billion.
Lululemon athletica maintains a market capitalisation of US$43.34 billion.
