Thanks,
Milan
EPS of $2.87 beat estimates of $2.72. Sales of $2.39B beat estimates of $2.35B. EBITDA of $604M beat estimates by 5.5%. Lululemon's growing confidence around reaccelerating sales through product innovation and customer engagement seems to have legs and can help it meet a target of $12.5 billion by 2026. Results for 3Q topped consensus on higher sales and margin, leading to raised full-year revenue and earnings guidance. Sales continue to be strong internationally, notably in China with a 39% increase. In North America, the US remains challenged, with revenue unchanged in the quarter. Inventories may increase by midteens at year-end, ahead of sales gains, as management chases new seasonal product for 2025. Men's and women's revenue both rose by high-single digits, with store sales gaining in the low teens and e-commerce sales up mid-single digits. Markdowns in 4Q may improve slightly from the year earlier. Things look much improved here.