Lululemon expects Q4 sales & earnings to print near the higher end of its earlier guidance
- Lululemon expects Q4 sales & earnings to print near the higher of its earlier guidance.
- The athletic apparel retailer says trading remained robust in the recent holiday season.
- Gilead Sciences raises its profit guidance for fiscal 2020 on strong Remdesivir demand.
In a statement on Monday, Lululemon Athletica (NASDAQ: LULU) expressed confidence that its fourth-quarter earnings and sales are likely to print near the higher end of its earlier guidance, as trading remained robust during the holidays.
As per the prior outlook, Lululemon expected a close to 5% annualised growth in its Q4 earnings. Its forecast for a year over year increase in fourth-quarter revenue stood between 15% and 19%.
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The athletic apparel maker, however, refrained from giving its guidance for the full year on Monday, due to the uncertainty revolving the ongoing Coronavirus pandemic that has so far infected more than 23 million people in the United States and caused over 384 thousand deaths.
CEO Calvin McDonald’s comments on Monday
According to CEO Calvin McDonald of Lululemon:
“The company is pleased with the momentum over the holiday period as our investments in Lululemon and Mirror allowed us to connect with guests both physically and digitally.”
In a report published in December, the Vancouver-headquartered company said that its sales in the fiscal third quarter came in 22% higher as compared to the same quarter last year.
As per analyst Simeon Siegel of BMO Capital Markets, investors had anticipated the company to raise its guidance on Monday. The announcement, therefore, wasn’t initially welcomed by the investors, pushing the stock down by about 3% in premarket trading. Lululemon, however, recovered the entire intraday loss on market open.
The retailer performed largely upbeat in the stock market last year with an annual gain of close to 50%. At the time of writing, Lululemon Athletica is valued at £34.89 billion and has a price to earnings ratio of 84.97.
Gilead Sciences raises its profit guidance for fiscal 2020
In separate news from the United States, Gilead Sciences also raised its profit guidance for fiscal 2020 on Monday. The company attributed the lifted outlook to the rising cases of COVID-19 that it said were keeping its Remdesivir treatment in demand.
Gilead (NASDAQ: GILD) now expects total products sales in fiscal 2020 to fall between £17.98 billion and £18.01 billion.
Gilead shares jumped more than 1% in premarket trading on Monday but lost the entire intraday gain on market open. Including the price action, the stock is now exchanging hands at £46.24 per share. If you want to invest in the stock market, you’ll need a stockbroker – here’s a list of the top few to make selection easier for you.