Earnings Updates | Q3 2023

December 13, 2023by Anton Tryhubchenko

The corporate reporting period for Q3 2023 is coming to the end. Over the past week, 7 companies from the S&P 500 index have already reported for the third financial quarter.

Lululemon Athletica was the best performer. Its revenue has grown by +3.9% quarter-on-quarter and met analysts’ expectations. Let’s analyze the company’s business in more detail.

Lululemon Athletica is a Canadian-American sportswear and accessories company. The company’s revenue for the last reported quarter was $2.2B. Of that amount, 23% is men’s sportswear, 20% is women’s, and 57% is other products and services.

In Q3 2023, the company has opened 14 new stores, and plans to open 25 more in the next quarter.  Due to continuous scaling, quarterly revenue has grown by more than 10% during the year. Such dynamics attracts investors. Their expectations for the company’s growth are reinforcing market forecasts for next quarter’s revenue in the range of $3.1B-$3.2B due to the seasonal increase in demand for winter clothing and equipment.

After the report was published, Lululemon Athletica shares rose by +5.3% and reached a maximum historical value of $489/share. Investors were positive about the company’s development initiatives and forecasts for the next quarter.

After the publication of the report, Salesforce shares rose by +9.3% and reached $251/share – the highest value in the last 2 years. Investors welcomed the company’s initiatives to introduce artificial intelligence, as well as the results of successful cost-cutting efforts.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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