Lululemon Athletica Inc., a top notch sports apparel company, raised its fourth quarter earnings and revenue guidance on Monday, leading to an analyst upgrading their price target. The company lifted its EPS guidance from a range of $1.64-$1.67 to $1.72-$1.74, moving its potential year-over-year growth rate from low double digits to mid-to-high teens.
LULU CEO, Calvin McDonald, said the company’s momentum has remained uninterrupted even during the holiday period, underscoring strong demand of its product offerings from customers across the world. The CFO, Patrick Guido, also remarked that the company is set to witness an upside to consensus with long-term targets due to a probable SG&A leverage next year on low-teens revenue growth.
An update on LULU’s 2020 targets is expected to be available when the company reports its Q4 earnings in March.