Pedestrians carrying protecting masks stroll previous a Lululemon retailer in San Francisco, California, on Monday, March 29, 2021.David Paul Morri
Pedestrians carrying protecting masks stroll previous a Lululemon retailer in San Francisco, California, on Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty Pictures
Lululemon Athletica stated 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 robust 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.
This is how Lululemon did for the interval ended Could 2, in contrast with what analysts had been anticipating, primarily based 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 expenses, 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 had 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 stated its males’s enterprise grew quicker from 2019 ranges than its girls’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like Hole, which just lately stated activewear gross sales proceed to drive gross sales, at each its Athleta and Outdated Navy banners.
Lululemon’s direct-to-consumer income climbed 55% to $545.1 million 12 months over 12 months. Gross sales in North America had been up 82%, and elevated 125% internationally.
CEO Calvin McDonald informed 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 whole 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 stated 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 variety of $1.10 to $1.15, on gross sales of $1.three billion to $1.33 billion. Analysts had been on the lookout for earnings of $1.01 per share on income of $1.20 billion, in line 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 variety of $5.55 billion to $5.65 billion.
“We had been performing effectively earlier than the pandemic, I believe we led the peer group in the course of the pandemic, and we’re enthusiastic about … our potential to proceed to carry out post-pandemic,” McDonald stated.
Lululemon shares are down about 9% 12 months to this point. It has a market cap of $41.four billion.
Discover the complete earnings press launch from Lululemon right here.