Lululemon Athletica Inc. (NASDAQ: LULU), designer and retailer of technical athletic apparel operating primarily in North America and Australia, today, reported that its first-quarter profit climbed 40%. Despite posting better-than-expected first-quarter earnings, LULU shares have fallen sharply in pre-market trading today.
Vancouver-based Lululemon Athletica today reported first-quarter earnings of $46.7 million, or $0.32 per share, compared with $33.4 million, or $0.23 per share reported for the same period in the previous year.
Analysts surveyed by Thomson Reuters were expecting the company to report a profit of $0.30 per share. LULU, itself, had forecast first-quarter earnings of $0.28-$0.29 per share.
Revenue for the quarter ended April 29 rose to $285.7 million from $186.8 million reported last year. First-quarter revenue beat Street estimates of $271 million. The company was expecting revenue for the quarter to come in between $265 million and $270 million.
Same store sales rose 25% on a constant dollar basis.
Christine Day, CEO of Lululemon Athletica, said that LULU’s strategy to increase inventory levels led to strong revenue growth and earnings performance in the first quarter as the company’s guests responded well to its spring styles and colors.
LULU also provided guidance for the second quarter. The company expects second-quarter revenue to come in between $273 million and $278 million, which is below Street estimates of $290 million. Earnings for the quarter are expected to come in between $0.28 per share and $0.30 per share, which is again below analysts’ estimate of $0.33 per share.
LULU also updated its projections for fiscal 2012. The company expects revenue of $1.32-$1.34 billion for the full year. Earnings for the full fiscal year are now expected to come in between $1.55 per share and $1.60 per share.
LULU shares are down 7% to $65.12 in pre-market trading.
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