Lululemon's third-quarter results exceeded expectations and announced a new share repurchase program

A few days ago, the yoga clothing brand Lululemon released its third-quarter results. Net profit for the three months ended Oct. 30 rose 28.5% year-on-year to US$68.3 million. Gross profit increased 24% year-on-year to US$278.4 million, and net income increased 13.5% year-on-year. % to $544.4 million, higher than Wall Street’s forecast of $540.2 million, and comparable sales increased by 7% year-on-year. The Group's net profit for the nine months increased by 12.5% ​​year-on-year to US$167.2 million, and net income increased by 14.6% year-on-year to US$1.55 billion.

Group CEO Laurent Potdevin pointed out that the good performance in the third quarter benefited from the strong implementation of the Group's business strategy in all regions, so the Group's gross profit margin and EPS per share also achieved outstanding performance this quarter.

On a conference call with Laurent Potdevin and Wall Street analysts, Laurent Potdevin said the group will continue to implement the initial five-year plan, which expects the group to double its revenue and profits in five years, and the group will continue to implement its long-term growth strategy, from product innovation. Expand international business and establish a $1 billion menswear business to further develop the Group's digital ecosystem.

Laurent Potdevin revealed that the group will make innovations in sports underwear next year. Thanks to the combination of new fabrics, the sales of sports underwear recorded a 20% increase this quarter. The combination of brand sports underwear and vests also won many consumers. favorite.

The group raised its outlook for the fourth quarter of fiscal 2016, which is currently expected to dilute earnings per share between 96 cents and 1.01 dollars, with net income ranging from $765 million to $785 million. Diluted earnings per share for the full year 2016 are expected to be between $2.18 and $2.23, with revenues ranging from $2.32 billion to $2.34 billion.

The group said that it will open its first brand store in China this month in Shanghai, and the second store will open soon. Two or three store stores will be opened in Shanghai next year. The brand's first global flagship store will also open next year. . In addition, the company's board of directors approved a stock repurchase program of up to $100 million.

The group's share price rose 4.5% to $59.83 on the Nasdaq. After the group announced its results and raised its expectations, the group's share price soared 12.6% to $67.4, with a market capitalization of about $8.2 billion.