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 mentioned 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.

Here is how Lululemon did for the interval ended Could 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 revenue grew to $145 million, or $1.11 per share, from $28.6 million, or 22 cents per share, a yr earlier. Excluding one-time fees, 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 mentioned its males’s enterprise grew quicker 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 operating and spin biking. The development, which hasn’t appeared to decelerate, has benefited firms together with Lululemon, Nike and Under Armour. It has additionally boosted extra conventional retailers like Gap, which lately mentioned 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 informed 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 mentioned momentum has remained robust in current weeks. The corporate continues to spend money on modern merchandise to drum up pleasure. It lately 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 spread of $1.10 to $1.15, on gross sales of $1.3 billion to $1.33 billion. Analysts had been on the lookout for earnings of $1.01 per share on income of $1.20 billion, based on 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 spread of $5.55 billion to $5.65 billion.

Find the full earnings press release from Lululemon here.