VANCOUVER – Lululemon Athletica inc. continues to cash in on the success of its yoga-inspired fashions and accessories, with its third-quarter profit beating analyst expectations on strong sales growth.
The Vancouver-based retailer (TSX:LLL) saw its third-quarter profit soar by 51 per cent over the same time last year.
Net income jumped to US$ 38.8 million or 27 cents per share, up from $ 25.7 million or 18 cents per share in the same quarter a year ago.
Lululemon’s revenue also rose sharply, growing by 31 per cent from a year ago to US$ 230.2 million from US$ 175.8 million.
The profit beat analyst estimates of 25 cents per share, although revenue was below the $ 235.7 million they expected, according to Thomson Reuters figures.
On the other hand, Lululemon’s revenues were at the high end of the company’s own range issued in September.
“We are proud to have produced another very healthy quarter of financial results,” Lululemon chief executive Christine Day said in a statement.
“We are set to finish 2011 with a stronger brand, a stronger organization and we remain focused on our strategic growth opportunities.”
Lululemon said Thursday it expects revenue in its fiscal fourth quarter will be even higher, rising to a range of US$ 327 million to US$ 332 million — putting the company on track to do better for the full year than previously anticipated.
It also estimates diluted earnings per share will be in a range of 40 cents to 42 cents per share in the fourth quarter.
Local news from metronews.ca/vancouver
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