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Pedestrians carrying protecting masks stroll previous a Lululemon retailer in San Francisco, California, on Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty Photographs
Lululemon Athletica mentioned Thursday fiscal first-quarter income soared 88%, topping analysts’ estimates, as shopper visitors steadily rebounded to its shops.
The athletic attire maker additionally issued a powerful forecast for its fiscal second quarter and raised full 12 months estimates, saying momentum for its model is rising throughout all geographies.
Its inventory rose lower than 1% on the information in prolonged buying and selling.
Here is how Lululemon did for the interval ended Could 2, in contrast with what analysts have been anticipating, based mostly on a Refinitiv survey:
- Earnings per share: $1.16 adjusted vs. 91 cents anticipated
- Income: $1.23 billion vs. $1.13 billion anticipated
Internet revenue grew to $145 million, or $1.11 per share, from $28.6 million, or 22 cents per share, a 12 months earlier. Excluding one-time costs, Lululemon earned $1.16 a share, higher than the 91 cents per shares that analysts estimated.
Income rose to $1.23 billion from $652 million a 12 months earlier, when its shops have been quickly shut. That got here in forward of expectations for $1.13 billion.
On a two-year foundation, gross sales grew 57%. Lululemon additionally mentioned its males’s enterprise grew sooner from 2019 ranges than its ladies’s.
The Covid pandemic has fueled shopper demand for health gear to put on round the home and to decorate for at-home exercises like operating and spin biking. The pattern, which hasn’t appeared to decelerate, has benefited corporations together with Lululemon, Nike and Below Armour. It has additionally boosted extra conventional retailers like Hole, which just lately mentioned activewear gross sales proceed to drive gross sales, at each its Athleta and Previous Navy banners.
Lululemon’s direct-to-consumer income climbed 55% to $545.1 million 12 months over 12 months. Gross sales in North America have been up 82%, and elevated 125% internationally.
CEO Calvin McDonald advised analysts Thursday that Lululemon nonetheless expects its worldwide enterprise will develop in dimension to be equal to its North American operations, within the close to future. On the finish of 2020, worldwide gross sales solely represented 14% of Lululemon’s complete enterprise.
The corporate additionally owns the at-home health platform Mirror, a rival to Peloton. Lululemon expects Mirror to drive between $250 million and $275 million in income this 12 months.
CFO Meghan Frank mentioned momentum has remained robust in latest weeks. The corporate continues to put money into progressive merchandise to drum up pleasure. It just lately launched a line of merchandise that use lower-impact dyes, and it’s piloting a trade-in and resale program.
For its fiscal second quarter, Lululemon expects adjusted earnings per share to be in a spread of $1.10 to $1.15, on gross sales of $1.3 billion to $1.33 billion. Analysts had been searching for earnings of $1.01 per share on income of $1.20 billion, in accordance with a Refinitiv survey.
For the 12 months, it is calling for adjusted earnings of $6.73 to $6.86 per share, on gross sales of $5.83 billion to $5.91 billion. Analysts anticipated it to earn $6.48 per share on gross sales of $5.68 billion.
Beforehand, Lululemon had been calling for fiscal 2021 income to be in a spread of $5.55 billion to $5.65 billion.
“We have been performing nicely earlier than the pandemic, I believe we led the peer group in the course of the pandemic, and we’re enthusiastic about … our capability to proceed to carry out post-pandemic,” McDonald mentioned.
Lululemon shares are down about 9% 12 months up to now. It has a market cap of $41.4 billion.
Discover the total earnings press launch from Lululemon right here.
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