Pedestrians wearing protective masks walk past a Lululemon store in San Francisco, California on Monday, March 29, 2021.
David Paul Morris | Bloomberg | Getty Images
Lululemon on Tuesday reported sales and earnings for the holiday quarter that exceeded analyst estimates, fueled by the sportswear maker’s online business and double-digit sales growth in both its women’s and men’s segments.
It also offered an upbeat sales outlook for the current quarter and year, and expected consumer demand for sweat-wicking leggings and sports bras to continue.
The company’s shares rose roughly 1% in after-hours trading.
Here’s how Lululemon performed in the quarter ended January 31st compared to analyst expectations based on a survey by Refinitiv:
- Earnings per share: $ 2.58 adjusted versus $ 2.49 expected
- Revenue: $ 1.73 billion versus $ 1.66 billion expected
Lululemon reported net income of $ 329.8 million, or $ 2.52 per share, compared to net income of $ 298 million, or $ 2.28 per share, last year. Excluding one-time items, the company made $ 2.58 per share, better than what analysts had been expecting $ 2.49.
Revenue rose approximately 24% from $ 1.4 billion a year ago to $ 1.73 billion. That exceeded expectations for $ 1.66 billion.
Online sales rose 92% as many consumers preferred to stay at home and shop from the comfort of the sofa during the Covid pandemic. Women’s sales rose 19% and men’s sales rose 17% for the quarter.
In North America, sales rose 21% while international sales rose 47%.
Direct sales to consumers nearly doubled, accounting for 52% of total sales for the quarter, compared to 33% of sales for the same period last year.
“We are still in the early stages of our growth, driven by exciting innovations,” said CEO Calvin McDonald in a statement.
According to Refinitiv, Lululemon expects first quarter revenue to range between $ 1.10 billion and $ 1.13 billion, compared to analysts’ average estimate of $ 999.5 million.
For fiscal 2021, the company claims revenue between $ 5.55 billion and $ 5.65 billion, compared to the analysts’ average estimate of $ 5.42 billion.
However, it was pointed out that further resurrections in Covid-19, also due to variants, could create additional restrictions that could suppress buyer demand and lead to a disruption in the supply chain.
For the time being, the company said it was still on track to meet the goals it had previously set for 2023, including doubling its men’s and online sales and quadrupling its international revenue.
Lululemon now also owns the home device manufacturer Mirror, which offers another source of income in addition to the pants, tops and training accessories sold.
Lululemon’s shares were down about 8% year-to-date on Tuesday. The company has a market capitalization of $ 41.3 billion.
The Lululemon press release can be found here.