Lululemon Q4 Beat Followed by Q1 Guidance Shortfall, Full-Year Sales Capped at $11.5B
Lululemon delivered Q4 EPS of $5.01 versus the $4.78 consensus and revenue of $3.64 billion versus $3.58 billion. It guided Q1 EPS of $1.63–$1.68 and revenue of $2.40–$2.43 billion, below estimates, and forecast full-year sales of $11.35–$11.50 billion.
1. Fourth Quarter Outperformance
Lululemon reported Q4 EPS of $5.01 beating the $4.78 consensus and revenue of $3.64 billion surpassing the $3.58 billion forecast, with comp sales up 2% versus an expected 1.75% decline.
2. Underwhelming Guidance Triggers Decline
The company projected Q1 EPS of $1.63–$1.68 and revenue of $2.40–$2.43 billion, both below analyst estimates, and set full-year sales between $11.35 billion and $11.50 billion, prompting an initial stock drop of about 2%.
3. Board Changes and Activist Pressure
Lululemon welcomed former Levi Strauss CEO Chip Berg to its board as the fifth independent director in five years, while activist investors and the founder intensify calls for strategic shifts and a permanent CEO appointment.