lululemon(LULU) ZACKS·2025-01-14 19:40Core Insights - Lululemon athletica inc. has revised its revenue and earnings guidance upward for Q4 fiscal 2024 due to stronger-than-expected holiday demand [1][2] - The company anticipates revenue growth of 11-12%, reaching 3.58 billion, an increase from the previous forecast of 3.51 billion [2] - Earnings per share are now projected to be between 5.85, up from the earlier guidance of 5.64 [3] Revenue and Earnings Outlook - The revised revenue guidance reflects an organic growth of 6-7% when accounting for an additional 53rd week in fiscal 2024 [2] - Lululemon expects a 30-basis-point increase in gross margin compared to Q4 fiscal 2023, a significant improvement from the prior guidance which anticipated a decrease [4] - The company also forecasts a reduction in selling, general and administrative (SG&A) expenses deleverage to 80-90 basis points, better than the earlier estimate of 90-100 basis points [4] Brand Positioning and Market Strategy - Lululemon's strong brand positioning is a key driver of its success, focusing on high-performance, premium athletic apparel [5] - The company's global expansion strategy, particularly in markets like China, has led to strong brand acceptance and effective customer engagement [6] - Lululemon's commitment to enhancing customer experience through both online and in-store channels supports its market position [7] Stock Performance - Lululemon's stock has increased by 38.7% over the past three months, outperforming the industry growth of 14.4% [8]