Good evening investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season kept rolling this week as five of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Monday 12/2: --

• Tuesday 12/3: Salesforce

• Wednesday 12/4: Dollar Tree

• Thursday 12/5: Dollar General, Lululemon, and Ulta Beauty

• Friday 12/6: --

Let’s dive in.

Salesforce (CRM)

Salesforce reported a solid Q3 earnings performance, surpassing revenue expectations but narrowly missing EPS estimates due to modest efficiency adjustments.

The company generated $9.44 billion in revenue, up 8% year-over-year, exceeding the $9.35 billion estimate, while net income reached $1.5 billion, reflecting a robust 25% YoY increase.

Key highlights included a 9% YoY growth in subscription revenue to $8.9 billion, a 26% rise in operating income to $1.9 billion, and an impressive 29% YoY surge in operating cash flow to $2 billion.

Despite a slight dip in services revenue (-2% YoY) and cost of revenue (-2% YoY), Salesforce maintained strong operational discipline, achieving a 20% operating margin and executing $1.6 billion in share buybacks. Continued advancements in AI innovation with AgentForce also underscored the company's tech-driven growth strategy.

Looking ahead, Salesforce raised its FY2025 revenue guidance to $37.8 billion-$38.0 billion (up 8% YoY) and expects Q4 revenue of $9.9 billion-$10.1 billion. Operating cash flow for FY2025 is forecast to grow 24%-26%, with an operating margin of 19.8%, reflecting confidence in sustained efficiency improvements and innovation.

CRM shares are +9.7% so far this week.

Lululemon (LULU)

Lululemon delivered a strong third quarter, exceeding analyst expectations, driven by solid revenue growth and margin expansion.

The company reported revenue of $2.4 billion, up 9% year-over-year, surpassing estimates by 1.69%. Net income rose to $351.9 million, a 42% increase, with diluted EPS of $2.87, beating forecasts by 5.9%.

Key highlights included a 33% surge in international revenue, led by 39% growth in China, while Americas revenue grew 2%. Same-store sales increased 4% globally, though Americas comparable sales fell 2%, offset by a 25% gain in international markets.

Gross margin improved 150 basis points to 58.5%, reflecting better pricing and reduced markdowns. The company repurchased $408.5 million in shares during the quarter and authorized an additional $1 billion for buybacks, signaling confidence in future growth.

For Q4, Lululemon expects revenue between $3.48 billion and $3.51 billion (+9% YoY) and EPS of $5.56 to $5.64. Full-year guidance was raised to $10.45 billion-$10.49 billion in revenue and $14.08-$14.16 in EPS, highlighting the brand’s continued momentum globally.

LULU shares are +17.9% so far this week.

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Ulta Beauty (ULTA)

Ulta Beauty delivered better-than-expected earnings in Q3, driven by slight revenue growth and disciplined cost management despite a challenging macroeconomic environment.

The company reported net income of $242.2 million, down 3% year-over-year, on net sales of $2.53 billion, which grew 2% and beat estimates by 1.2%.

Comparable sales increased 0.6%, supported by a 6% rise in skincare revenue, while cosmetics revenue declined by 1%. Operating income fell 3% to $318.5 million, impacted by higher operating expenses, which rose 3% year-over-year. Ulta also executed $267 million in share buybacks during the quarter and ended with $2.4 billion in inventory, up 2% YoY.

For fiscal 2024, Ulta raised its EPS guidance to $23.20-$23.75 from $22.60-$23.50 and narrowed its revenue forecast to $11.1-$11.2 billion, reflecting confidence in its market position and ongoing investments to drive long-term growth.

ULTA shares are +13.4% so far this week.

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Dollar General (DG)

Dollar General reported mixed third-quarter results, with revenue slightly exceeding expectations but earnings missing estimates due to higher operating costs and challenging economic conditions.

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