Lululemon Beats Revenue, Profit Expectations As New CEO Settles In
December 06 2018 - 3:53PM
Dow Jones News
By Micah Maidenberg
Lululemon Athletica Inc. (LULU) beat revenue and profit
estimates in its latest quarter, helped along by rising same-store
sales and another jump in its direct-to-consumer business.
The Vancouver, British Columbia-based company booked sales of
$747.7 million in the quarter ending October 28, up 21% versus the
comparable period last year. Analysts polled by FactSet predicted
$738 million.
Comparable store sales at the seller of activewear and
athleisure apparel were up 6%, Lululemon said Thursday. The company
said direct-to-consumer sales rose 44%, and accounted for more than
25% of total net revenue for the quarter, up from about 21% in the
year earlier period.
Profit was up 60% to $94.4 million, or 71 per share, surpassing
the 69 cents a share analysts anticipated.
On an adjusted basis, per-share profit was 75 cents, beating
expectations of 69 cents.
Shares of Lululemon, up 67% so far this year, dropped 5.4% to
$124.38 in after-hours trading.
In July, Lululemon appointed Calvin McDonald, who previously
worked at beauty company Sephora, as its new CEO, after its former
top leader resigned after the company said his behavior failed to
meet standards.
The company lifted its full-year revenue guidance, saying it now
expects net sales of $3.24 billion to $3.25 billion, compared to
the previously guidance of $3.185 billion to $3.24 billion.
Earnings per share are expected to be $3.65 to $3.68, versus the
range of $3.45 to $3.53 given earlier.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
December 06, 2018 16:38 ET (21:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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