Categories AlphaGraphs, Earnings, Retail

Lululemon stock rallies on Q4 earnings beat; strong guidance

Athletic apparel retailer Lululemon Athletica (LULU) on Wednesday reported higher earnings and revenues for the fourth quarter, which also topped the market expectations. The impressive results and the management’s upbeat full-year outlook drove the company’s stock sharply higher during the after-hours trading session. The positive outcome is attributable to the strong holiday season.
Lululemon Athletica Comp Sales Trend

Fourth-quarter profit, excluding special items, moved up to $1.85 per share from $1.33 per share in the same period of the previous year. Unadjusted net income climbed to $218.5 million or $1.65 per share from $119.8 million or $0.88 per share in the fourth quarter of 2017. The results beat the Street view.

The solid bottom-line performance was driven by a 26% growth in revenues to $1.17 billion, which also surpassed the Wall Street projection.  Comparable store sales increased 16%, while direct to consumer net revenue surged 37%.

The strong bottom-line performance was driven by a 26% growth in revenues to $1.17 billion, which also surpassed the Street view

“Lululemon has delivered one of its strongest years yet, a result of broad-based strength across the business. We are energized to build upon our momentum and to seize the many opportunities ahead for Lululemon around the world,” said CEO Calvin McDonald.

The management currently expects first-quarter revenues to be between $740 million and $750 million and sees comparable sales growth in the low-double digits. The forecast for earnings is $0.68-$0.70 per share. In the whole of 2019, revenues are predicted to rise year-on-year to $3.70-$3.74 billion. Full-year earnings are expected to be in the range of $4.48 per share to $4.55 per share.

Related: Lululemon Athletica Q3 profit jumps 60%

During the fourth quarter, the company repurchased 1.5 million shares at an average price of $120.99 per share and also authorized a new repurchase program for up to $500 million shares.

Lululemon shares moved up around 63% in the past twelve months, and 18% since the beginning of the year. The stock closed Wednesday’s regular trading session notably higher and gained further following the earnings announcement.


We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight