Pedestrians carrying 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 provided an upbeat outlook for sales through the present quarter and for the yr, anticipating client demand for its sweat-wicking leggings and sports activities bras will proceed.
The firm’s shares have been up about 1% in after-hours buying and selling.
Here’s how Lululemon did through the quarter ended Jan. 31 in contrast with what analysts have 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 web earnings of $329.Eight million, or $2.52 per share, in contrast with web earnings of $298 million, or $2.28 per share, a yr 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 yr earlier. That topped expectations for $1.66 billion.
Its on-line sales surged 92%, as many customers most well-liked staying put at residence and buying from the consolation of the couch through the Covid pandemic. Women’s sales have been up 19%, and males’s grew 17% through the quarter, the corporate stated.
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 through the year-ago interval, it stated.
“We are nonetheless within the early innings of our development, fueled by thrilling improvements,” CEO Calvin McDonald stated in an announcement.
Lululemon now expects first-quarter income to be in a spread of $1.10 billion to $1.13 billion, in contrast with analysts’ common estimate of $999.5 million, in keeping with Refinitiv.
For fiscal 2021, the corporate is asking for income to be in a spread 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, may trigger extra restrictions that would suppress shopper demand as effectively as result in provide chain disruption.
For now, the corporate stated it stays on monitor to succeed in 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 at-home health gear maker Mirror, which provides one other income development past the pants, tops and exercise equipment that it sells.
Lululemon’s shares are down about 8% yr to this point, as of Tuesday’s market shut. The firm has a market cap of $41.three billion.
