Athletic apparel retailer Lululemon reported fiscal first quarter financial results on Thursday, revealing that sales and earnings beat expectations.
Both earnings and revenue topped Wall Street’s expectations which were boosted by growth online and in the retailer’s men’s division.
For the first quarter, earnings per share was $1.48 while $1.43 was expected. Revenue at $1.61 billion was higher than the $1.53 billion expected.
The retailer reported net income in its fiscal first quarter of $190 million compared with net income of $145 million, or $1.11 a share, a year earlier.
Lululemon’s revenue grew roughly 32% from $1.23 billion a year earlier.
Lululemon additionally raised its financial outlook for fiscal 2022, expecting the momentum in its business to continue in spite of broader economic headwinds. This includes problems with the supply chain and inflation.
Looking ahead, the company expects sales in fiscal 2022 in a range of $7.61 billion to $7.71 billion, up from a prior forecast of $7.49 billion to $7.62 billion. Analysts were looking for $7.54 billion, according to Refinitiv data.
Lululemon expects to earn, on an adjusted basis, between $9.35 and $9.50 per share, up from a prior range of $9.15 to $9.35. Analysts were looking for per-share earnings of $9.28.
For the second quarter, Lululemon expects revenue to be in the range of $1.75 billion to $1.78 billion, topping analysts’ expectations for $1.71 billion.
Excluding the gain on the sale of an administrative office building, adjusted earnings per share are expected to be in the range of $1.82 to $1.87, ahead of analysts’ expectations for $1.77.
Shares are down about 23% year to date.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.