Lululemon (LULU) Soars 9.6% on Upbeat Outlook, Leadership Reshuffle

We recently published 10 Big Names Leaving Wall Street in the Dust; 4 at Fresh Highs. Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best performers on Friday.

Lululemon jumped by 9.60 percent on Friday to close at $204.97 apiece as investors cheered a flurry of developments, including an upbeat outlook, buyback program, and key leadership changes in the company.

In its earnings call on the same day, Lululemon Athletica Inc. (NASDAQ:LULU) said that it expects revenues for the full year to be in the range of $10.962 billion to $11.047 billion, or an implied growth of 4 to 6 percent year-on-year.

It also projects diluted earnings per share to be at $12.92 to $13.02.

For the fourth quarter alone, revenues are targeted at $3.5 billion to $3.585 billion, with diluted EPS of $4.66 to $4.76.

The outlook followed Lululemon Athletica Inc.’s (NASDAQ:LULU) earnings performance in the third quarter of the year, where it narrowed its net income by 12.8 percent to $306.8 million from $351.87 million in the same period last year.

Net revenues, on the other hand, increased by 7 percent to $2.56 billion from $2.4 billion year-on-year.

In other developments, Lululemon Athletica Inc. (NASDAQ:LULU) said that it is currently in search for the next CEO after Calvin McDonald announced plans to step down from his post and as a member of the Board of Directors effective January 31, 2026.

In the meantime, incumbent Chief Finance Officer Meghan Frank and Chief Commercial Officer André Maestrini would serve as co-CEOs.

The company also expanded the role of Marti Morfitt as the new executive chairman, in addition to being the chairman of the board, effective immediately.

Also on Friday, the listed firm announced plans to repurchase $1 billion worth of its shares in a bid to provide greater value to its shareholders.

While we acknowledge the potential of LULU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.