06:44 AM EDT, 08/30/2024 (MT Newswires) -- Lululemon Athletica ( LULU ) shares rose early Friday despite the company lowering its full-year outlook as Chief Executive Calvin McDonald said the company aims to speed up the release of several new athletic apparel styles.

Earnings are now set to come in between $13.95 and $14.15 per share for fiscal 2024, the retailer said late Thursday, down from its previous guidance of $14.27 to $14.47. Revenue is pegged at $10.38 billion to $10.48 billion versus prior projections of $10.7 billion to $10.8 billion. The consensus on Capital IQ is for GAAP EPS of $13.76 and revenue of $10.48 billion.

Lululemon's shares advanced 4.5% in premarket activity. Truist Securities said the market reaction reflects "overly depressed" investor expectations heading into the quarterly results, with the stock down 49% year to date. "We are encouraged about the forward outlook as management appears to have a sharpened its focus on adding more newness into their assortment, which we believe will be the key driver of reaccelerating growth," the brokerage said in a client note.

During a late Thursday earnings call with analysts, McDonald said the company is "fast-tracking several new styles within performance shorts, tops and track suits" for 2025. "We are optimistic that we will begin to see the benefits of these strategies over the upcoming quarters and return to our historical levels of newness no later than spring 2025," McDonald said on the call, according to a Capital IQ transcript.

McDonald said that the company's near-term plan aims to use its capabilities in "chase and fast-track design" to bring new styles to women's assortment.

The "positive response" to the athletic apparel maker's reset expectations suggests that "sentiment has bottomed," Truist wrote in the note.

For the quarter ended July 28, the retailer's net income rose to $3.15 a share from $2.68 the year before, topping the Street's view for $2.92. Revenue grew 7% year over year to $2.37 billion, but missed analysts' $2.41 billion estimate. Sales in the Americas edged 1% higher, while international revenue climbed 29%.

"Earnings per share exceeded our expectations, driven predominantly by strong gross margin," Chief Financial Officer Meghan Frank said on the call. "When looking at expenses, we continue to manage the business prudently while protecting key investments for the long term."

Comparable sales gained 2% on a yearly basis, as a 3% decline in the Americas was more than offset by a 19% jump in international operations. Gross margin improved 80 basis points to 59.6%. The company opened 10 new stores during the quarter.

Lululemon expects EPS to be in a range of $2.68 to $2.73 for the third quarter and revenue to be at $2.34 billion to $2.37 billion. The Street is looking for GAAP EPS of $2.68 and revenue of $2.36 billion.

Price: 270.58, Change: +11.57, Percent Change: +4.47