Lululemon this week indicated that fourth-quarter revenue and earnings per share should land toward the high end of its prior guidance. Management reaffirmed its revenue range of $3.500 billion to $3.585 billion and its EPS range of $4.66 to $4.76, but now expects results to skew toward the upper brackets. This suggests the critical holiday period delivered stronger-than-expected demand, reinforcing confidence in the brand’s resilience despite broader consumer headwinds.

When accounting for the extra 53rd week in the prior-year quarter, Lululemon’s updated guidance implies fourth-quarter revenue growth of approximately 3% to 4% year over year. Although this represents a deceleration from the 7% growth reported in the fiscal third quarter, it nevertheless indicates that top-line expansion has persisted through the seasonally important holiday quarter, a key metric for investor forecasting and valuation models.

Geographically, Lululemon’s international business remains a standout performer. In the third quarter, international revenue surged by 33% year over year, while comparable sales in the Americas declined by 5%. Overall Q3 comparable sales rose 1%. This bifurcated trend underscores the global appetite for Lululemon’s product portfolio and reduces dependency on U.S. market performance, a strategic advantage as management intensifies efforts to revive domestic growth.

At current multiples, Lululemon trades at about 15 times trailing earnings and 16 times forward earnings, levels that investors view as reasonable given the brand’s growth prospects. However, this valuation assumes that international growth remains robust and that U.S. initiatives begin to bear fruit. Key risks include potential deceleration abroad and continued margin pressure from tariffs. Investors should monitor Q4 earnings commentary for evidence of a U.S. recovery and sustained international momentum.