Lululemon forecasts better-than-expected sales as digital business accelerates

Earnings

In this article

Pedestrians wearing protective masks walk past a Lululemon store in San Francisco, California, on Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty Images

Lululemon on Tuesday reported revenue and profit for the holiday quarter that topped analysts’ estimates, boosted by the athletic apparel maker’s online business, and double-digit sales growth in both its women’s and men’s divisions.

It also offered an upbeat outlook for sales during the current quarter, anticipating consumer demand for its sweat-wicking leggings and sports bras will continue.

Its shares were up about 1% in afterhours trading.

Here’s how Lululemon did during the quarter ended Jan. 31 compared with what analysts were expecting, based on a poll by Refinitiv:

  • Earnings per share: $2.58 adjusted vs. $2.49 expected
  • Revenue: $1.73 billion vs. $1.66 billion expected

Lululemon reported net income of $329.8 million, or $2.52 per share, compared with net income of $298 million, or $2.28 per share, a year earlier. Excluding one-time items, the company earned $2.58 per share, better than the $2.49 expected by analysts.

Its revenue spiked roughly 24% to $1.73 billion from $1.4 billion a year earlier. That topped expectations for $1.66 billion.

Lululemon now expects first-quarter revenue to be in a range of $1.10 billion to $1.13 billion, compared with analysts’ average estimate of $999.5 million, according to Refinitiv.

Lululemon’s shares are down about 8% year to date, as of Tuesday’s market close. Lululemon has a market cap of $41.3 billion.

Find the press release from Lululemon here.

This story is developing. Please check back for updates.

Articles You May Like

It’s ‘liquidity, stupid’: VCs say tech investing is tough amid IPO lull and ‘nuts’ AI hype
What Trump’s mass deportation plan would mean for immigrant workers and the economy
30% of student loan borrowers have gone without essentials, like food and medicine, CFPB finds
Capri and Tapestry abandon plans to merge, citing regulatory hurdles
Personal luxury goods market to shrink for first time since the 2008 financial crash, research finds