Lululemon Athletica's stock surged 13.14% in pre-market trading on Friday, following the announcement of CEO Calvin McDonald's departure and better-than-expected third-quarter earnings.
The company reported earnings of $2.59 per share, surpassing estimates of $2.27, while revenue rose 7% year-over-year to $2.57 billion, also beating expectations. Lululemon raised its full-year guidance, now forecasting EPS of $12.92-$13.02 and revenue of $10.96-$11.05 billion. The board also authorized a $1 billion increase to its stock repurchase program, signaling confidence in the company's future.
Investors welcomed the CEO transition, hoping for a fresh strategic direction amid challenges in the U.S. market. Strong international growth, particularly a 46% sales jump in China, offset weaker performance in the Americas.
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