2 Key Things From Lululemon's Earnings Call That Investors Should Know
On Thursday, Lululemon Athletica (NASDAQ: LULU) reported strong results for its third quarter of fiscal 2021 (which ended Oct. 31). The athletic-apparel retailer's revenue jumped 30% year over year to $1.45 billion. Adjusted for one-time items, net income surged 40% to $211.3 million, or $1.62 per share. Both results exceeded Wall Street's expectations, with the profit beat sizable, as analysts had been looking for adjusted earnings per share of $1.41.
Despite the quarter's better-than-expected results and management raising its full-year guidance for both the top and bottom lines, shares edged down 1.8% the day after earnings were released. The main culprit for the small decline was probably management's lowering of its full-year sales outlook for Mirror, the home connected-fitness business that it acquired last year. Investors shouldn't be concerned because this is a new business for Lululemon and accounts for less than 3% of its total revenue.
Earnings releases tell only part of the story. Following are two key things from the company's Q3 earnings call that investors should know.
Source Fool.com
