Home Business Lululemon first-quarter gross sales rise 88%, topping estimates, as retailer site visitors...

Lululemon first-quarter gross sales rise 88%, topping estimates, as retailer site visitors rebounds

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

David Paul Morris | Bloomberg | Getty Photographs

Lululemon Athletica stated Thursday 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 powerful forecast for its fiscal second quarter and raised full yr 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 Might 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

Web earnings grew to $145 million, or $1.11 per share, from $28.6 million, or 22 cents per share, a yr 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 yr earlier, when its stores were temporarily 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 sooner from 2019 ranges than its ladies’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 working and spin biking. The development, which hasn’t appeared to decelerate, has benefited corporations together with Lululemon, Nike and Under Armour. It has additionally boosted extra conventional retailers like Gap, which not too long ago stated activewear sales continue 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 advised analysts Thursday that Lululemon nonetheless expects its worldwide enterprise will develop in measurement to be equal to its North American operations, within the close to future.

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 stated momentum has remained robust in latest weeks. The corporate continues to put money into revolutionary merchandise to drum up pleasure. It not too long ago launched a line of products 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 keeping with 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.

Find the full earnings press release from Lululemon here.

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