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

Pedestrians sporting protecting masks stroll previous a Lululemon retailer in San Francisco, California, on Monday, March 29, 2021.

David Paul Morris | Bloomberg | Getty Images

Lululemon on Tuesday reported income and revenue for the vacation quarter that topped analysts’ estimates, boosted by the athletic attire maker’s on-line business, and double-digit sales development in each its ladies’s and males’s divisions.

It additionally supplied an upbeat outlook for sales throughout the present quarter and for the 12 months, anticipating shopper demand for its sweat-wicking leggings and sports activities bras will proceed.

Its shares had been up about 1% in afterhours buying and selling.

Here’s how Lululemon did throughout the quarter ended Jan. 31 in contrast with what analysts had been anticipating, based mostly on a ballot by Refinitiv:

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

Lululemon reported internet earnings of $329.Eight million, or $2.52 per share, in contrast with internet earnings of $298 million, or $2.28 per share, a 12 months earlier. Excluding one-time gadgets, the corporate earned $2.58 per share, higher than the $2.49 anticipated by analysts.

Its income spiked roughly 24% to $1.73 billion from $1.four billion a 12 months earlier. That topped expectations for $1.66 billion.

Its on-line sales surged 92%, as many customers most popular staying put at residence and procuring from the consolation of the couch throughout the Covid pandemic. Women’s sales had been up 19%, and males’s grew 17% throughout the quarter, the corporate mentioned.

In North America, income grew 21%, whereas worldwide sales rose 47%.

Direct-to-consumer sales practically doubled, and represented 52% of whole sales within the quarter, in contrast with 33% of sales throughout the year-ago interval, it mentioned.

“We are still in the early innings of our growth, fueled by exciting innovations,” CEO Calvin McDonald mentioned in an announcement.

Lululemon now expects first-quarter income to be in a variety of $1.10 billion to $1.13 billion, in contrast with analysts’ common estimate of $999.5 million, in response to Refinitiv.

For fiscal 2021, the corporate is asking for income to be in a variety of $5.55 billion to $5.65 billion, in contrast with analysts’ common estimate of $5.42 billion.

It cautioned, nonetheless, that additional resurgences in Covid-19, together with from variants, might trigger further restrictions that would suppress shopper demand as nicely as result in provide chain disruption.

For now, the corporate mentioned it stays on observe to hit the targets it previously charted to hit by 2023, together with doubling its males’s and on-line sales, and quadrupling worldwide revenues.

Lululemon additionally now owns the at-home health tools maker Mirror, which affords one other income development past the pants, tops and exercise equipment that it sells.

Lululemon’s shares are down about 8% 12 months thus far, as of Tuesday’s market shut. Lululemon has a market cap of $41.three billion.

Find the press launch from Lululemon right here.

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