Lululemon Athletica Inc. registered earnings and sales in the first-quarter that toppled analysts estimates, boosting shares up to almost 4% in the after-trading hours last Wednesday.
Based on a survey done by Refinitiv analysts, the results for the Canadian athletic apparel producer went against what Wall Street had expected.
Lululemon ended at 74 cents per share compared to the expected 70 cents. In terms of revenue, it notched a $782 million against the forecasted $755 million. The Vancouver-based firm also raised full-year guidance. Its expected revenue is around $3.73 billion to $3.77 billion, and a $4.51 to $4.58 to earnings per share in 2019.
At the end of the first quarter last May, Lululemon’s net income increased from 55 cents per share or $75.2 million to 74 cents each share or $96.6 million.
After the market close last Wednesday, the shares of Lululemon have already skyrocketed over 40 percent the current year. At the end of April, the stock hit an all-time high at $179.50 each share but has just plunged back at around $170.
Same-store sales of the company, a critical indicator for any retailer’s business, rose 14%, outpacing a Refinitiv forecasted growth at 11.6%.
Citing the company’s revenue call, Lululemon’s CFO Patrick Guido, noted that the estimates on the second quarter, which was less than the forecast, mirrors a “modest impact” against possible new tariffs, and also added costs to airfreight goods in order to prevent expected port congestion throughout Asia because of the pending increases on taxes.
Guido added that the majority of effects brought by tariff would happen in the third quarter. He anticipates these added costs will cause a 5 cent decrease in earnings per share in 2019.
Meanwhile, CEO Calvin McDonald said Lululemon would continue to see significant momentum in the whole business. He stressed that the company was positive about the upcoming opportunities and banking on its 5-year growth plans, whose goal is to double digital and men’s revenues, and to quadruple revenues in the international scene.
