A Lululemon sign is seen inside a shopping center in San Diego, California, November 23, 2022.
Mike Blake | Reuters
Lululemon on Tuesday, sales were strong over the holiday season, suggesting wealthier shoppers are continuing to purchase yoga pants and tops despite rising prices for staples.
The corporate also issued optimistic forecasts for the latest fiscal yr.
related investment news
Lululemon shares jumped about 11% in after-hours trading after the report was released. Until Tuesday’s close, the stock is roughly flat over the yr, giving the company a market value of $40.87 billion.
Here’s what the company reported for a period of three months ended on January 29, in comparison with Wall Street expectations based on a survey of analysts conducted by Refinitiv:
- Earnings per share: adjusted $4.40 versus expected $4.26
- Revenue: $2.77 billion vs. $2.7 billion expected
Lululemon’s fourth-quarter net income fell to $119.8 million, or 94 cents a share, from $434.5 billion, or $3.36 a share, a yr ago. Excluding impairment and other charges related to the Mirror acquisition and other items, earnings per share were $4.40.
Revenue rose to $2.77 billion from $2.13 billion a yr ago.
In keeping with estimates by Refinitiv, the company expects fiscal 2023 revenue of between $9.3 billion and $9.41 billion, beating Wall Street’s expectations of $9.14 billion. The corporate expects full-year earnings of $11.50 to $11.72 per share, in comparison with Refinitiv’s estimate of $11.26 per share.
“Looking ahead, we remain optimistic about our ability to deliver sustainable growth and long-term value to all our stakeholders,” Meghan Frank’s chief financial officer said in an announcement.
The Vancouver-based sportswear retailer said total comparable sales in the fourth quarter were up 27%. Also called same-store sales, the metric includes sales from stores which were open repeatedly for at the very least 12 months.
“We consider that that is considered one of the few firms in the industry that has a really long growth path and can be very visible,” said Rick Patel, managing director of Raymond James.
Patel said his company, which maintains a powerful buy rating on the stock, sees positives in Lululemon’s international business and its men’s business, and that the company’s worst wrestling with stocks is over.
In December, Lululemon reported that inventories at the end of the third quarter were up 85% year-on-year. The corporate said on Tuesday that inventories had increased by 50% at the end of 2022.