Lululemon, the popular athletic apparel retailer, has posted impressive sales growth in both its North American and international markets during the third quarter. However, the company's holiday guidance has failed to meet Wall Street's expectations, causing its shares to fall in extended trading.

During the third quarter, Lululemon saw a 12% increase in sales in North America and a significant 49% surge in international markets. Despite these positive results, the retailer's holiday guidance fell short of expectations. Lululemon expects fourth-quarter sales to range between $3.14 billion and $3.17 billion, slightly lower than the anticipated $3.18 billion by analysts.

Moreover, the company forecasts earnings per share for the fourth quarter to be between $4.85 and $4.93, compared to the estimated range of $4.80 to $5.19. For the full year, Lululemon expects sales between $9.55 billion and $9.58 billion, compared to analysts' estimates of $8.11 billion to $9.90 billion.

In response to the announcement, Lululemon's shares declined approximately 3% during extended trading.

Despite the lower-than-expected holiday guidance, Lululemon reported strong demand in the third quarter and indicated a positive start to the holiday shopping season. In a news release, CEO Calvin McDonald expressed optimism, stating, "This was another strong quarter for lululemon as our innovative product offerings and community activations continued to powerfully resonate with our guests globally." McDonald added that the company is well-positioned to deliver for its customers in the fourth quarter, expressing enthusiasm about the significant opportunities ahead.

On a call with analysts, McDonald revealed that this year's Black Friday was the "single biggest day" in Lululemon's history, further indicating the company's strength during the holiday season. During the third quarter, total comparable sales for Lululemon increased by 13%, surpassing analysts' expectations of a 12.4% growth. However, comparable sales at the retailer's stores were slightly lower than anticipated, recording a 9% increase instead of the expected 11.7%. Meanwhile, comparable direct-to-consumer sales spiked by 18%, exceeding analysts' predicted growth of 16.9%.

Lululemon remains confident in its ability to capitalize on the holiday season and its future prospects. As the company continues to appeal to its global customer base with innovative products and engaging community activations, it anticipates sustained success in the midst of promising opportunities.

It is important to note that the information provided in this article is based solely on the statements made by Lululemon and does not reflect the perspectives of any other entities or sources outside of the company.