Lululemon Stock Climbs After Q3 Earnings: Here's Why

Core Insights - Lululemon Athletica, Inc. reported strong third quarter earnings, surpassing analyst expectations on both earnings per share and revenue [1][2] - The company announced a leadership change with CEO Calvin McDonald set to step down in January 2026, while interim co-CEOs will be appointed [3] Financial Performance - Quarterly earnings were reported at $2.59 per share, exceeding the analyst estimate of $2.27 by 14.15% [2] - Quarterly revenue reached $2.57 billion, surpassing the Street estimate of $2.48 billion and increasing from $2.4 billion in the same period last year [2][6] - Net revenue increased by 7% to $2.6 billion, with international net revenue rising by 33% [7] Sales Performance - Comparable sales increased by 1%, or 2% on a constant dollar basis, while Americas comparable sales decreased by 5% [7] - International comparable sales saw an increase of 18% [7] Future Outlook - The company raised its fiscal 2025 GAAP EPS guidance to a range of $12.92 to $13.02, slightly above the $12.95 analyst estimate [6] - Fiscal revenue outlook was also raised to between $10.96 billion and $11.05 billion, compared to the $10.979 billion estimate [6] - The company expressed optimism about early performance as it enters the holiday season [5] Stock Activity - Following the earnings report, Lululemon stock gained 6.95%, reaching $200.50 in extended trading [6] Share Repurchase Program - The board approved a $1 billion increase to the company's stock repurchase program [3]