https://www.cnbc.com/2023/03/28/lululemon-shares-jump-as-holiday-quarter-sales-surge.html
Lululemon on Tuesday reported robust holiday-quarter gross sales, suggesting wealthier customers are nonetheless buying yoga pants and tops regardless of rising costs for important items.
The corporate additionally issued upbeat steering for its new fiscal yr.
Shares of Lululemon jumped about 11% in after-hours buying and selling following the report. Via Tuesday’s shut, the inventory is about flat for the yr, placing the corporate’s market worth at $40.87 billion.
Right here’s what the corporate reported for the three-month interval ended Jan. 29, in contrast with Wall Avenue expectations based mostly on a survey of analysts by Refinitiv:
Earnings per share: $4.40 adjusted vs $4.26 anticipated
Income: $2.77 billion vs. $2.7 billion anticipated
Lululemon’s fourth-quarter web revenue fell to $119.8 million, or 94 cents per share, from $434.5 billion, or $3.36 per share, a yr in the past. Excluding impairment and different prices associated to the acquisition of Mirror, in addition to different objects, per-share earnings had been $4.40.
Income rose to $2.77 billion from $2.13 billion a yr in the past.
The corporate expects fiscal 2023 income of between $9.3 billion and $9.41 billion, topping Wall Avenue’s expectations of $9.14 billion, in line with Refinitiv estimates. The corporate expects full-year revenue of between $11.50 and $11.72 per share, in contrast with Refinitiv estimates of $11.26 per share.
“Trying forward, we stay optimistic relating to our capability to ship sustained progress and long-term worth for all our stakeholders,” mentioned Chief Monetary Officer Meghan Frank in a press release.
The Vancouver-based athletic attire retailer mentioned complete comparable gross sales for the fourth quarter elevated by 27%. Additionally known as same-store gross sales, the metric contains gross sales from shops open constantly for no less than 12 months.
“We imagine that it is among the few firms within the area that has a really lengthy pathway for progress, and it’s additionally a really extremely seen one,” mentioned Rick Patel, managing director at Raymond James.
Patel mentioned his agency, which maintains a robust purchase score on the inventory, sees upside in Lululemon’s worldwide enterprise and its males’s enterprise, and that the worst of the corporate’s stock struggles are prior to now.
In December, Lululemon mentioned inventories on the finish of its third quarter had been up 85% year-over-year. The corporate mentioned Tuesday that as of the tip of 2022, inventories had been up 50%.
submitted by /u/Puginator [comments]
Source link
