Lululemon Shares Surge on Strong International Growth and Holiday Optimism

The activewear brand exceeded earnings expectations with a 9% revenue growth, driven by robust international sales, despite challenges in the U.S. market.

Lululemon's Q3 revenue rose 9% year-over-year to $2.4 billion, surpassing analyst expectations, while net income increased by 41.5% to $351.9 million.
International sales grew 33%, with China leading at a 39% revenue increase, offsetting a 2% decline in North American comparable sales.
The company raised its full-year revenue forecast to $10.45-$10.49 billion and earnings per share to $14.08-$14.16, reflecting cautious optimism for the holiday season.
Lululemon credited its disciplined pricing strategy and targeted marketing efforts, particularly in China, for maintaining profitability and customer loyalty.
Shares jumped over 17% in early trading, with analysts noting improved margins, strong holiday traffic, and strategic stock buybacks as key drivers of investor confidence.