Athletic apparel retailer Lululemon Athletica (LULU) reported a jump in earnings for its first quarter helped by an increase in revenue as well as higher comparable store sales. Earnings and revenue exceeded market expectations. The yoga-clothing maker’s stock grew about 6% in the after-hours trading as its second-quarter guidance came in ahead of Street’s view.
With revenue climbing by 25% to $649.7 million, earnings soared by 140.5% to $75.1 million or $0.55 per share. Adjusted EPS surged by 71.9%. Total comparable sales increased 20% or up 19% on a constant dollar basis.
Looking ahead into the second quarter, the company expects revenue of $660 million to $665 million and EPS of $0.46 to $0.48. Comparable sales are expected to increase in the high-single digits on a constant dollar basis.
For fiscal 2018, Lululemon lifted revenue outlook to a range of $3.040-3.075 billion from the previous estimate of $2.985-$3.022 billion. EPS is now expected to be in the range of $3.10-$3.18 compared to the prior forecast of $3.08-$3.08. Comparable sales are now predicted to grow the high-single digits on a constant dollar basis, higher than the prior estimate of mid-to-high single digits.
“Our first quarter results reflect the ongoing strength of our business and our continued focus on product innovation, global growth, digital acceleration, and, most importantly, investing in our people. Our momentum remains strong and we are optimistic for 2018 and beyond,” said operating chief Stuart Haselden.
The Vancouver, Canada-based company ended the first quarter with $966.6 million in cash and cash equivalents and inventories of $373.4 million. Lululemon ended the quarter with a total of 411 stores, and total gross square feet of 1,277.
Shares of Lululemon Athletica ended Thursday’s regular trading session down 0.55% at $105.05 on the Nasdaq. The stock had been trading between $47.73 and $107.68 for the past 52 weeks.