Retail

Lululemon Slides By With Q1 Earnings

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Lululemon Athletica Inc. (NASDAQ: LULU) released its fiscal first quarter financial results after markets closed Wednesday. The company said that it had $0.74 in earnings per share (EPS) and $782.3 million in revenue, compared with consensus estimates that called for $0.70 in EPS and $755 million in revenue. The same period from last year had $0.55 in EPS and $649.71 million in revenue.

During the quarter, direct to consumer net revenue represented 26.8% of total net revenue compared to 24.3% for the first quarter of fiscal 2018. And year over year direct to consumer net revenue increased 33% or increased 35% on a constant dollar basis

At the same time, comparable store sales increased 6% or increased 8% on a constant dollar basis. Based on a shifted calendar, total comparable sales—including direct to consumer—increased 14%, or increased 16% on a constant dollar basis.

Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.86 to $0.88 and net revenue in the range of $825 million to $835 million. Consensus estimates are calling for $0.88 in EPS and $834.4 million in revenue for the coming quarter.

Calvin McDonald, CEO, commented:

Lululemon continues to see strong momentum across the entire business. I’m inspired by our teams who are executing at high levels, and I want to thank everyone across the globe for their passion and dedication to the brand. I look forward to the opportunities ahead of us, and delivering on our Power of Three five-year vision.

Shares of Lululemon closed Wednesday at $170.89, with a 52-week range of $110.71 to $179.50. The stock has a consensus analyst price target of $186.00. Following the announcement, the stock was up about 2% at $174.00 in the after-hours trading session.

 

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