Earnings per share: $5.29 vs. $5.00 expectedRevenue: $3.21 billion vs. $3.19 billion expectedThe firm’s reported internet revenue for the three-month interval that ended Jan. 28 was $669.5 million, or $5.29 per share, in contrast with $119.8 million, or 94 cents per share, a 12 months earlier. Gross sales rose to $3.21 billion, up about 16% from $2.77 billion a 12 months earlier.Shares fell about 10% in prolonged buying and selling Thursday.Like its friends, Lululemon has been grappling with unsure demand and a slowdown in discretionary spending that is hit the attire house notably arduous. Buyers have watched how Lululemon performs in North America, its largest area by gross sales, because it laps harder prior 12 months comparisons and contends with shoppers who’re selecting experiences over items like garments and footwear. In the course of the quarter, gross sales rose 9% within the Americas, in comparison with 29% development within the year-ago interval. Whereas Lululemon remains to be rising within the area, the speed has slowed down considerably as Lululemon focuses on increasing internationally.In the meantime, worldwide gross sales grew 54% on a reported foundation, with gross sales in China rising 78% and 36% in the remainder of Lululemon’s markets.Comparable gross sales rose 12% through the quarter, simply shy of the 12.3% uptick analysts had anticipated, in keeping with StreetAccount.For the present quarter, Lululemon expects internet income to be between $2.18 billion and $2.20 billion, representing development of 9% to 10%. Analysts have been anticipating a forecast of $2.25 billion, or development of 12.5%, in keeping with LSEG.It expects diluted earnings per share to be between $2.35 and $2.40, under the $2.55 analysts had anticipated, in keeping with LSEG.For the total 12 months, it expects gross sales to be between $10.7 billion and $10.8 billion, in contrast with estimates of $10.9 billion, in keeping with LSEG.It anticipates diluted earnings per share can be between $14 and $14.20 for the 12 months, in comparison with estimates of $14.13, in keeping with LSEG.”As you’ve got heard from others in our business, there was a shift within the U.S. client habits of late and we’re navigating what has been a slower begin to the 12 months on this market,” CEO Calvin McDonald mentioned on a name with analysts Thursday. “We view this as a possibility to maintain taking part in offense as we lean into investments that may proceed our development trajectory. Exterior the U.S., our enterprise stays sturdy, and all our worldwide markets in Canada.”Lululemon has lengthy been one of many market leaders for ladies’s athletic attire, however the Vancouver-based firm is dealing with extra competitors than ever. Newer entrants like Alo Yoga and Vuori have been nipping at Lululemon’s market share, and it is needed to work tougher to set itself aside within the extra crowded class. The retailer has been working to construct out its footwear providing and develop its males’s enterprise. In the course of the quarter, it opened its first males’s retailer in Beijing — a key development marketplace for the corporate. In February, it debuted its first males’s sneaker, CityVerse, and plans to launch new operating kinds for each women and men as efficiency sneakers proceed to be a shiny spot in an in any other case stagnant shoewear market. Headed into the vacations, McDonald mentioned Black Friday was the “single largest day” within the firm’s historical past and he was “inspired” by the developments he was seeing initially of the season. However the retailer’s holiday-quarter outlook got here in a bit in need of analysts’ expectations. In January, it raised that steerage after it noticed gross sales “balanced throughout channels, classes, and geographies,” finance chief Meghan Frank mentioned in a information launch. Lululemon mentioned it was anticipating fiscal fourth quarter internet income to be between $3.17 billion and $3.19 billion for the fourth quarter, up from a earlier vary of $3.14 billion to $3.17 billion. It additionally raised its steerage for earnings per share, and mentioned it expects a spread of between $4.96 and $5 per share, in comparison with a earlier vary of $4.85 to $4.93.Learn the total earnings launch right here.