By Emily Dattilo
Shares of Lululemon Athletica were trading lower after the maker of exercise apparel raised its financial forecasts for the fourth quarter but the earnings guidance at the low end was just shy of analysts’ estimates.
The stock was down 1.4% to $484.20. Over the last 12 months, shares have rise 64%.
For its fiscal fourth quarter, Lululemon said it now expects earnings of between $4.96 and $5 a share, while analysts had penciled in $4.97, according to FactSet. The previous range provided by the company was earnings of $4.85 to $4.93.
The company now expects net revenue of between $3.17 billion and $3.19 billion, higher than Lululemon’s prior call for revenue of between $3.135 billion to $3.17 billion. Analysts were expecting $3.19 billion. It also lifted its outlook for gross margins.
“We are pleased with our performance during the holiday season, as guests continue to respond well to our innovative and versatile product offerings,” Chief Financial Officer Meghan Frank said in a press release.
The guidance boost likely doesn’t come as a surprise to analysts at William Blair, who wrote about the possibility of one last month.
Up next? Lululemon’s management will meet with analysts and investors at the ICR Conference that runs Monday through Wednesday.
Write to Emily Dattilo at emily.dattilo@dowjones.com