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

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top