Lululemon Shares Jump on Earnings and Outlook

Shares of leisure athletic apparel company Lululemon were on the rise on Wednesday in after hours trading after the company reported first quarter financial results.

The stock jumped almost 4% as Wall Street learned that the company’s sales outpaced what analysts had been expecting.

Lulelemon also raised its revenue guidance for the full year to a range of $3.73 billion and $3.77 billion. Earnings per share was also raised to a range of $4.51 to $4.58.

“Lululemon continues to see strong momentum across the entire business,” Chief Executive Officer Calvin McDonald stated.

For the first quarter, Lululemon reported earnings per share of 74 cents while analysts had been expecting 70 cents a share according to a Refinitiv survey of analysts. Revenue of $782 million was also higher than the $755 million expected.

McDonald said on the earnings call, “lululemon had another successful quarter, driven by many strengths in our business across product, channel and geography. Our innovative merchandise assortments and our engagement with guests around the world enables the financial results we’re proud to report to you today.”

He also said, “We’re excited about our vision to be the experience of brand that ignites the community of people living the sweat life. Next month, you will see our first truly experiential store when we open Lincoln Park in Chicago. This 20,000 square foot store captures who we are as a brand as it will embody the sweat life through multiple studios, a meditation space, a healthy juice and food offering, and areas for community gatherings. This distinct environment will provide us additional opportunities to explore and learn as we connect with our guests in a range of new and exciting ways.”

Disclaimer: We have no position in Lululemon Athletica inc. (NASDAQ: LULU) and have not been compensated for this article.