Home Business Lululemon first-quarter sales rise 88%, topping estimates, as store traffic rebounds

Lululemon first-quarter sales rise 88%, topping estimates, as store traffic rebounds

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Lululemon first-quarter sales rise 88%, topping estimates, as store traffic rebounds

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

David Paul Morris | Bloomberg | Getty Photos

Lululemon Athletica mentioned Thursday its fiscal first-quarter income soared 88%, topping analysts’ estimates, as shopper site visitors steadily rebounded to its shops.

The athletic attire maker additionally issued a robust forecast for its fiscal second quarter and raised full-year 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 had 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 yr earlier. Excluding one-time prices, 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 yr earlier, when its shops had been briefly 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 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 comparable to operating and spin biking. The pattern, which hasn’t appeared to decelerate, has benefited firms together with Lululemon, Nike and Below Armour. It has additionally boosted extra conventional retailers comparable to Hole, which not too long ago 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 yr over yr. Gross sales in North America had been up 82% and elevated 125% internationally.

CEO Calvin McDonald instructed 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 represented solely 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 yr.

CFO Meghan Frank mentioned momentum has remained sturdy in current weeks. The corporate continues to spend money on progressive merchandise to drum up pleasure. It not too long ago 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 $1.3 billion to $1.33 billion. Analysts had been searching for earnings of $1.01 per share on income of $1.20 billion, in response to a Refinitiv survey.

For the yr, 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 properly earlier than the pandemic, I feel we led the peer group in the course of the pandemic, and we’re enthusiastic about … our capacity to proceed to carry out post-pandemic,” McDonald mentioned.

Lululemon shares are down about 9% yr 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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