Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day ago.
Shares of Lululemon Athletica ($LULU) surged nearly 1% on Monday after the company raised guidance on revenues and earnings for the fourth quarter, lifting retail sentiment.
The apparel maker now expects net revenue to be between $3.56 billion and $3.58 billion, 11% to 12% higher than in the fourth quarter of fiscal 2023. Its previous guidance range was $3.475 billion to $3.510 billion.
Diluted earnings per share are now expected to be in the range of $5.81 to $5.85 for the fourth quarter of fiscal 2024 compared to the previous guidance range of $5.56 to $5.64.
It further expects gross margin to increase about 30 basis points relative to the fourth quarter of fiscal 2023, compared to its previous guidance of a decrease of 20 to 30 basis points.
"During the holiday season, our guests responded well to our product offering, enabling us to increase our fourth-quarter guidance,” Meghan Frank, Lululemon’s CFO said in a statement.
Sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day ago. Message volumes were in the ‘extremely high’ category.
One commenter thought the stock price should have gone higher on the guidance.
BofA Securities analyst Lorraine Hutchinson raised the price target for Lululemon to $480 from $420 with a ‘Buy’ rating on the stock, according to media reports.
Lululemon stock is up 4.4% year-to-date.
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