Lululemon Athletica Q3 Profit Drops - Quick Facts

(RTTNews) - Canadian yoga-wear maker Lululemon Athletica, Inc. (LULU) posted lower third-quarter net income of $60.5 million or $0.42 per share, compared with $66.1 million or $0.45 per share in the previous year. On average, 33 analysts polled by Thomson Reuters expected the company to report profit per share of $0.38 for the quarter. Analysts' estimates typically exclude special items.

The Vancouver, Canada-based company's net revenue for the quarter climbed 10% to $419.4 million from $379.9 million in the third quarter of fiscal 2013. Analysts estimated revenue of $424.77 million for the period. Including comparable-store sales and direct to consumer, total comparable sales rose by 3% on a constant dollar basis. Quarterly comparable-store sales slid by 3% on a constant dollar basis, while direct to consumer revenue increased 27% on a constant dollar basis.

For the fourth quarter of fiscal 2014, the firm sees net revenue of $570 million to $585 million based on a total comparable sales increase in the low single digits on a constant dollar basis. The sales forecast relative to the prior guidance is expected to be impacted by around $15 million owing to the combined impact of West Coast port delays, a lower Canadian dollar, and delayed store openings. Fourth-quarter earnings per share are projected to be in the range of $0.65 to $0.69 for the quarter.

Looking further ahead, fiscal 2014 net revenue are anticipated to be in the range of $1.765 billion to $1.780 billion based on a total comparable sales increase in the low single digits on a constant dollar basis. Earnings per share are likely to be in the range of $1.53 to $1.57 for the year, or $1.74 to $1.78 normalized for the non-recurring tax adjustment incurred in the first quarter of fiscal 2014 related to the repatriation of foreign earnings that would be used to fund the buyback program. Analysts project annual earnings per share of $1.77, on $1.79 billion in revenues.