Lululemon Athletica (NASDAQ: LULU) topped market expectations on revenue and earnings for the first quarter of 2019, allowing its shares to gain 4.2% in after-market hours on Wednesday. The consensus estimate was for earnings of $0.70 per share on revenue of $755 million.
Total revenue grew 20% to $782.3 million compared to the prior-year quarter. On a constant dollar basis, revenues rose 22%.
Total comparable sales grew 14%, based on a shifted calendar. Comparable store sales rose 6% while direct-to-consumer net revenue increased 33%. Direct-to-consumer revenue represented 26.8% of total net revenue compared to 24.3% last year.
Net income was $96 million, or $0.74 per share, compared to $75 million, or $0.55 per share, in the year-ago period.
At the end of the quarter, inventories increased 19% to $443 million and the company’s store count stood at 455 stores.
For the second quarter of 2019, the company expects revenue of $825-835 million based on a total comparable sales increase in the low double digits on a constant dollar basis. EPS is expected to be $0.86-0.88.
For the full year of 2019, Lululemon expects sales of $3.73-3.77 billion based on a total comparable sales increase in the low double digits on a constant dollar basis. The company estimates EPS to come in the range of $4.51-4.58.
In April, the apparel retailer unveiled its five-year growth plan called “Power of Three” running until 2023. The company believes the new strategy would be a tailwind to power its next phase of growth. As part of the strategy, the three new focus areas in the near future will be menswear, digital sales, and international expansion.