Posted on: March 30, 2021 Posted by: Betty Lee Comments: 0

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 on Tuesday reported income and revenue for the fiscal fourth quarter that topped analysts’ estimates, boosted by the athletic attire maker’s on-line enterprise, and double-digit gross sales development in each its girls’s and males’s divisions.

It provided an upbeat outlook for gross sales in the course of the present quarter and for the 12 months, anticipating shopper demand for its sweat-wicking leggings and sports activities bras will proceed. The retailer has been an enormous pandemic beneficiary, with many individuals caught at dwelling gravitating towards exercise clothes as on a regular basis put on.

The corporate’s shares dropped greater than 1% in after-hours buying and selling, having risen greater than 60% over the previous 12 months. Lululemon cautioned {that a} potential resurgence of Covid circumstances might damage its enterprise, regardless of its forecast for income development.

This is how Lululemon did in the course of the quarter ended Jan. 31 in contrast with what analysts have been anticipating, primarily based on a ballot by Refinitiv:

  • Earnings per share: $2.58 adjusted vs. $2.49 anticipated
  • Income: $1.73 billion vs. $1.66 billion anticipated

Lululemon reported web earnings of $329.8 million, or $2.52 per share, in contrast with web earnings of $298 million, or $2.28 per share, a 12 months earlier. Excluding one-time objects, the corporate earned $2.58 per share, higher than the $2.49 anticipated by analysts.

Its income spiked roughly 24% to $1.73 billion from $1.4 billion a 12 months earlier. That topped expectations for $1.66 billion.

Its on-line gross sales surged 92%, as many customers most popular staying put at dwelling and purchasing from the consolation of the couch in the course of the Covid pandemic. Ladies’s gross sales have been up 19%, and males’s grew 17% in the course of the quarter, the corporate mentioned.

In North America, income grew 21%, whereas worldwide gross sales rose 47%.

Direct-to-consumer gross sales almost doubled, and represented 52% of whole gross sales within the quarter, in contrast with 33% of gross sales in the course of the year-ago interval, it mentioned.

“We’re nonetheless within the early innings of our development, fueled by thrilling improvements,” CEO Calvin McDonald mentioned in an announcement.

Lululemon now expects first-quarter income to be in a variety of $1.10 billion to $1.13 billion, in contrast with analysts’ common estimate of $999.5 million, in line with Refinitiv.

For fiscal 2021, the corporate is asking for income to be in a variety of $5.55 billion to $5.65 billion, in contrast with analysts’ common estimate of $5.42 billion.

It cautioned, nonetheless, that additional resurgences in Covid-19, together with from variants, might trigger extra restrictions that might suppress shopper demand in addition to result in provide chain disruption.

For now, the corporate mentioned it stays on monitor to succeed in the targets it beforehand charted to hit by 2023, together with doubling its males’s and on-line gross sales, and quadrupling worldwide revenues.

Lululemon additionally now owns at-home health gear maker Mirror, which provides one other income development past the pants, tops and exercise equipment that it sells.

It mentioned it plans to ramp up investments within the start-up, which generated $170 million in income in 2020, together with outcomes from earlier than Lululemon’s $500 million acquisition.

Lululemon’s shares are down about 8% 12 months to this point, as of Tuesday’s market shut. The corporate has a market cap of $41.3 billion.

Discover the press launch from Lululemon right here.

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