Lululemon Athletica Inc (NASDAQ:LULU) stock rose 4.40% (As on December 8, 11:15:35 AM UTC-4, Source: Google Finance) after the company reported fiscal third-quarter results that topped Wall Street estimates, but the athletic apparel maker’s revenue guidance for the holiday season quarter fell short of estimates. Net revenue increased 12% in North America, and increased 49% internationally. Total comparable sales increased 13%, or 14% on a constant dollar basis. Comparable store sales increased 9%. Direct to consumer net revenue increased 18%, or 19% on a constant dollar basis. Direct to consumer net revenue represented 41% of total net revenue compared to 41% for the third quarter of 2022. Adjusted income from operations increased 24% to $436.3 million. Adjusted operating margin increased 80 basis points to 19.8%.

LULU in the third quarter of FY 23 has reported the adjusted earnings per share of $2.53, beating the analysts’ estimates for the adjusted earnings per share of $2.19. The company had reported the adjusted revenue growth of 19 percent to $2.2 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $2.19 billion. Adjusted gross profit increased 23% to $1.3 billion. Adjusted gross margin increased 220 basis points to 58.1%.

The company expects fourth-quarter net revenue between $3.14 billion and $3.17 billion, below analysts’ average estimate of $3.18 billion, according to LSEG data. Fourth-quarter profit forecast between $4.85 and $4.93 per share came in below expectations of $4.94 per share.

Lululemon expects full-year 2023 profit between to be $12.34 and $12.42 per share and revenue to be between $9.55 billion and $9.59 billion.

On Nov. 29, the company approved an additional stock buyback program for up to $1B.

On the other hand. The analysts at Oppenheimer said the results suggest the company is “resilient amid macro pressures.” “Looking closer into 2024, we are now even more upbeat upon nearer-term fundamental prospects for LULU, particularly as macro pressures continue to abate, and the likelihood of investors to award shares a higher multiple, more reflective of the company’s superior fundamental prowess,” they said. Lululemon is a Top Pick within Oppenheimer’s Consumer Growth & eCommerce research coverage.

Further, the analysts at Bernstein said investors are likely disappointed that LULU didn’t raise FY guidance after the Q3 beat. While they remain Market Perform-rated on LULU stock “given the run-up in valuation since October,” the price target was lifted by $34 to $400 per share to reflect the recent S&P500 index inclusion.