Ahead Of Lululemon Athletica's Q3 Results

(RTTNews) - Canadian yoga-wear maker Lululemon Athletica Inc. (LULU) has been extending its footprint globally. International expansion is a key growth driver and the company continues to increase its brand presence in major cities both in Europe and Asia. Will the company continue to report impressive results for the third quarter?

Lululemon is due to release its third-quarter results before the bell on Wednesday, December 9. The company is expected to report earnings of $0.38 per share on revenue of $482.13 million for the third quarter, according to analysts polled by Thomson Reuters.

The company projects third-quarter earnings in the range of $0.35 - $0.37 per share, and net revenue in the range of $477 million - $482 million based on total comparable sales in the high single digits on a constant dollar basis.

For fiscal 2015, earnings per share is expected to be in the range of $1.87 - $1.92. The company now expects net revenue to be in the range of $2.025 billion - $2.055 billion based on total comparable sales in the high single digits on a constant dollar basis.

In June, the company expected 2015 earnings per share in the range of $1.86 - $1.91 and revenue in the range of $2.00 billion - $2.05 billion, based on a total comparable sales increase in the mid single digits on a constant dollar basis.

Wall Street now expects the company to report earnings per share of $1.91 on revenue of $2.05 billion.

In the previous quarter...

The company reported second-quarter net income of $47.7 million or $0.34 per share, compared to $48.75 million or $0.33 per share in the prior-year quarter.

On average, 35 analysts polled by Thomson Reuters expected earnings per share of $0.33 for the quarter. Analysts' estimates typically exclude special items.

Net revenue increased 16% to $453 million from $390.7 million last year. Analysts expected revenues of $445.76 million for the quarter.

Comparable store sales rose 6% on a constant dollar basis. Total comparable sales, which includes comparable store sales and direct to consumer, increased 11% on a constant dollar basis. Direct to consumer net revenue increased 30% to $82.2 million, or 18.2% of total company revenue.

Laurent Potdevin, Lululemon's CEO, said: "We exceeded our revenue targets for the past quarter, supported by strong performance from both our store and e-commerce channels. Looking to the remainder of the year, our team is laser focused on meeting our strategic key goals: grow our global collective, relentlessly innovate our product lines and continue to create transformational experiences for our guests."