Lululemon on Thursday reported fiscal-first quarter profit and revenue that outpaced Wall Street’s expectations, boosted by growth online and in the retailer’s men’s division.
The athletic apparel retailer also raised its financial outlook for fiscal 2022, expecting the momentum in its business to continue in spite of broader economic headwinds, including red hot inflation and the snarled supply chain.
Lululemon, which caters to a more affluent customer, joins a group of retailers including Levi Strauss & Co., Nordstrom and Macy’s high-end Bloomingdale division that are luring shoppers with enough extra money to splurge on new clothes and accessories while prices are rising at rates last seen four decades ago.
Lululemon in particular was seen as a pandemic beneficiary, as people sought out stretchy pants and comfortable clothing to wear at home. But now, even as Americans emerge from their homes to return to offices and social outings, they’re still buying so-called athleisure items.
Lululemon sees sales in fiscal 2022 in a range of $7.61 billion to $7.71 billion, up from a prior forecast of $7.49 billion to $7.62 billion. Analysts were looking for $7.54 billion, according to Refinitiv data.
The company expects to earn, on an adjusted basis, between $9.35 and $9.50 per share, up from a prior range of $9.15 to $9.35. Analysts were looking for per-share earnings of $9.28.
Lululemon’s shares rose more than 1% in extended trading.
Here’s how Lululemon did in its fiscal first quarter compared with what Wall Street was expecting, based on Refinitiv data:
- Earnings per share: $1.48 vs. $1.43 expected
- Revenue: $1.61 billion vs. $1.53 billion
The retailer reported net income in its fiscal first quarter of $190 million, or $1.48 per share, compared with net income of $145 million, or $1.11 a share, a year earlier.
Lululemon’s revenue grew roughly 32% to $1.61 billion from $1.23 billion a year earlier.
For the second quarter, Lululemon expects revenue to be in the range of $1.75 billion to $1.78 billion, topping analysts’ expectations for $1.71 billion.
Excluding the gain on the sale of an administrative office building, adjusted earnings per share are expected to be in the range of $1.82 to $1.87, ahead of analysts’ expectations for $1.77.
Lululemon shares are down about 23% year to date.
This story is developing. Please check back for updates.
