Lululemon Athletica (LULU) released its third quarter financial results before the opening bell on Thursday. Although the company reported lower profits, it boosted its outlook for the year.
Inside LULU's Results
Earnings
The company’s net income fell to $60.45 million, or 42 cents per share, from $66.11 million, or 45 cents per share, last year. On average, analysts expected to see earnings of 38 cents per share.
Revenue
Revenue rose 10% to $419.4 million from last year’s $379.9 million. Analysts expected to see revenue of $424.77 million.
Outlook
Looking ahead to Q4, the company expects to see earnings between 65 cents and 69 cents per share, and revenue between $570 million and $585 million. Analysts expect to see 72 cents per share in earnings and $593.54 million in revenue.
For FY2014, the company expects to see earnings between $1.53 and $1.57 per share and normalized earnings between $1.74 and $1.78 per share. Analysts expect to see earnings of $1.77 per share.
Mutual Funds to Watch
Investors seeking exposure to LULU without purchasing the individual stock may want to consider one of the mutual funds below. These mutual funds currently hold the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FDGRX | Fidelity® Growth Company | 7.76% |
| FCGSX | Fidelity® Series Growth Company | 1.91% |
| VMCIX | Vanguard Mid Cap Index | 1.59% |
The Bottom Line
The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in LULU may also be interested in Express (EXPR) and The Gap (GPS).
Shares of LULU are down 12% YTD.
